Pro-rata (proration)
Paying only for the part of a period that applies, such as a joiner’s first month or a leaver’s last, in proportion to the days covered.
When someone joins or leaves in the middle of a month, their pay for that month is scaled to the days they were employed. That scaling is proration.
The result depends on the basis you choose, for example calendar days or working days. Pick one, write it down and apply it to everyone, so that two people who start on the same day are always treated the same.
Illustrative example. An invented joiner starts on the 11th of a 30-day month. On a calendar-day basis they are paid for 20 of the 30 days.
General information, not tax or legal advice.
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