Salary Calculation for Incomplete Month

When an employee joins a company or ceases employment during a month, thereby having an incomplete month of service, the salary payment may have to be apportioned accordingly.

the Salary of a monthly rated employee is apportioned base on the number of days in the respective calendar month.

the apportionment is made on a calendar month basis because the salary payment is contracted on a monthly basis, whether the month has only 28 days as in February or 31 days as in august the employee gets the agreed monthly salary.

(Monthly Salary x Number of Days employed in the month ) / Number of days in the respective month

Example: employee Starts work on 12.1.2016, his salary is RM 1000.

Salary for January 2016 = (RM 1000 x 20 ) / 31 = RM 645.16

The calculations is base on the number of days in a month. it is not based on the number of working days in the month. The employer can use any other formula as he wished as long as the answer he gets is more favourable to the employee than the above answer.