Pro-rata annual salary
£32,000
4 days / 5 days × Â£40,000
Full-time salary
£40,000
Pro-rata (annual)
£32,000
Pro-rata calculation is proportional. Statutory benefits (pension, holiday) are also pro-rated.
Frequently Asked Questions
How is pro-rata salary calculated?
Pro-rata salary is calculated by dividing the full-time salary by the full-time working hours or days, then multiplying by the actual hours or days worked. For example, if a full-time salary is £40,000 for 5 days per week and an employee works 4 days, their pro-rata salary is £40,000 × (4 ÷ 5) = £32,000.
Are statutory rights pro-rated for part-time workers?
Yes. Part-time workers are entitled to the same statutory rights as full-time workers on a pro-rata basis. This includes holiday entitlement, sick pay, pension contributions and redundancy pay. The Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 require equal treatment.
How does pro-rata affect employer NI and pension?
Employer NI and pension contributions are calculated on the pro-rata salary, not the full-time equivalent. This typically reduces employer costs proportionally, though the lower qualifying earnings threshold means some low part-time salaries may attract less NI as a percentage.