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Guide · Pro rata salary

Pro rata salary explained

How to work out a pro rata salary for part-time hours or term-time contracts, how holiday pay fits in and a worked example. Start by the job advert or contract states the FTE salary and the full-time working week, usually 35 to 40 hours.

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Skip the reading: use the Pro Rata Salary Calculator for your own numbers.

How do you work out a pro rata salary?

  1. Get the full-time equivalent salary and hours. The job advert or contract states the FTE salary and the full-time working week, usually 35 to 40 hours.
  2. Calculate the hours fraction. Divide your weekly hours by the full-time hours. 22.5 ÷ 37.5 = 0.6 FTE.
  3. Calculate the weeks fraction for term-time roles. Add paid holiday weeks to the weeks worked and divide by 52. 39 + 5.6 = 44.6 ÷ 52 = 0.858.
  4. Multiply. FTE salary × hours fraction × weeks fraction = pro rata salary.
  5. Check holiday and benefits. Holiday, pension and sick pay are also pro rata. Statutory holiday is 5.6 weeks of your working pattern.

What does pro rata mean?

Pro rata means “in proportion”. A pro rata salary is the full-time salary scaled to the hours and weeks you actually work. Employers quote the full-time equivalent (FTE) so that jobs can be compared, then pay you the proportion that matches your contract. Holiday, pension contributions and sick pay scale in the same way.

Pattern (FTE £36,000 on 37.5 hours)FTEPro rata salary
4 days (30 hours)80%£28,800
3 days (22.5 hours)60%£21,600
2.5 days (18.75 hours)50%£18,000
Full-time, term-time only (39 weeks + 5.6 holiday)85.8%£30,877

Worked example: 30 hours, term-time only

Hours fraction 30 ÷ 37.5 = 0.8. Weeks fraction (39 + 5.6) ÷ 52 = 85.8%. Pro rata salary = £36,000 × 0.8 × 0.858 = £24,702, paid as £2,058 a month. After tax and NI that is £1,775 a month, an effective rate of 13.8%.

What do people get wrong about pro rata pay?

  • Using calendar days instead of hours. Three days a week is not always 60%: it depends on the hours in those days.
  • Forgetting term-time holiday weeks. Leaving out the paid holiday understates pay by around 10%.
  • Comparing pro rata pay with full-time take-home. Part-time pay is taxed less, so the drop in take-home is smaller than the drop in gross.

Use the pro rata salary calculator for your own hours.

Frequently asked questions

Is a pro rata salary paid over 12 months?

Usually yes. Even term-time only staff are normally paid the annual pro rata salary in twelve equal instalments, so pay continues through school holidays. Some employers pay only in months worked; check the contract.

How is pro rata holiday calculated for irregular hours?

Holiday accrues at 12.07% of hours worked in each pay period, which is 5.6 weeks divided by the 46.4 working weeks in a year. Employers may pay rolled-up holiday pay at 12.07% on top of hourly pay for irregular-hours workers.

Does part-time work affect my tax code?

No. Your personal allowance is the same whatever your hours, so a part-time salary is a smaller amount taxed under the same rules. If you have two part-time jobs, the allowance goes against one and the other is taxed at BR unless you ask HMRC to split it.

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