Payroll Calculation Example for New Joiner, Resignation, Promotion

New Joiner Payroll Calculation

The system computes the salary for New Joiners based on Calendar Days, according to the actual number of days worked in the month.
Salary is prorated using:
Salary= (Basic Salary / Work Days/Month) * Actual Days Worked

Scenario 1: End of Month Cut-Off
1. Cut Off Date: End of Month
2. Payment Schedule: Once a Month
3. Employment Start Date: 8/09/2025
4. Basic Salary: RM 4,000
5. Work Day/Month: 26 Days
  - September has 30 days
    Days Worked: 30-8+1 = 23 Days
    Salary Calculation: RM 4,000/26 * 23 days = RM 3,538.46
Scenario 2: 26th Cut-Off (Cross Month)
1. Cut Off Date: 26th
2. Payment Schedule: Once a Month
3. Employment Start Date: 8/09/2025
4. Basic Salary: RM 4,000
5. Work Days/Month: 26 Days
  - Pay Period: 27/08/2025 - 26/09/2025
    Days Worked: 26 - 8 + 1 + 19 Days
    Salary Calculation: RM 4, 000/26 *19 days + RM 2,923.08

Resigned Employee Payroll Calculation

The system computes the prorated salary for a resigned employee based on Calendar Days, according to the actual days worked within the month or pay period.

Scenario 1: End of the Month Cut Off
1. Cut Off Date: End of Month
2. Payment Schedule: Once a Month
3. Employment End Date: 08/09/2025
4. Basic Salary: RM 4,000
5. Work Days/Month: 26 Days
  - Days Worked: 8 Days
  - Salary Calculation: RM 4,000/26 * 8 days = RM 1,230.77
Scenario 2: 26th Cut-Off (Cross Month)
1. Cut Off Date: 26th
2. Payment Schedule: Once a Month
3. Employment End Date: 08/09/2025
4. Basic Salary: RM 4,000
5. Work Days/Month: 26 Days
  - Pay Period: 27/08/2025 - 26/09/2025
  - Days Worked:
    August: 31- 27= 5 Days
    September: 8 Days
    Total Days Worked: 8 + 4 =13 Days
  - Salary Calculation: RM 4,000/ 26 * 12 Days = RM 2,000

Promotion/Pay Increment Salary Calculation

When an employee receives a Salary Adjustment during the month the system prorates the salary based on the effective date provided in the Employment Contract.
Salary will be split into two parts under Related tab: Salary at Previous Rate and Salary at New Adjusted Rate.

Scenario 1: End Of the Month Cut-Off
1. Cut Off Date: End of Month
2. Payment Schedule: Once a Month
3. Previous Contract Rate: RM 4, 000
4. Revised Contract Rate: RM 4, 800
5. Revised Rate Effective Date: 12/09/2025
6. Work Days/Month: 26 Days
  1. Period under Previous Contract Rate:
    1/09/2025 - 11/09/2025 = 11 Days
    RM 4,000/26 * 11 Days = RM 1,692.31
  2. Period under New Contract Rate:
    12/09/2025 - 30/09/2025 = 14 Days (26-12+1)
    RM 4,800/26 * 14 Days = RM 2,769.23
  3. Total Salary:
    RM 1,692.31 + RM 2,769.23 = RM 4,461.54
Scenario 2: 26th Cut-Off (Cross Month)
1. Cut Off Date: 26th
2. Payment Schedule: Once a Month
3. Previous Contract Rate: RM 4, 000
4. Revised Contract Rate: RM 4,800
5. Revised Rate Effective Date: 12/09/2025
6. Work Days/Month: 26 Days
  1. Period under Previous Contract Rate:
    27/08/2025 - 11/09/2025 = 16 days
    RM 4,000/26 * 16 days = RM 2,461.54
  2. Period under New Contract Rate:
    12/09/2025 - 26/09/2025 = 10 days
    RM 4,800/26 * 10 days = RM 1,846.15
  3. Total Salary:
    RM 2,461.54 + RM 1,846.15 = RM 4,307.69

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Payroll Calculation Example for New Joiner, Resignation, Promotion