Payroll Earning and Deduction Proration Requirement
We have a requirement to prorate the earning and deductions based on 30 days per month, irrespective of number of days in a month.
For instance, a new hire joined on 10th Jan 2022. Assuming a recurring earning element is having the pay value of 3000.
as the new hire joined on 10th Jan, the 3000 amount will be prorated as below,
Prorated amount = (3000/31)*22, where 31 is the number of days in January and 22 is the prorated days as he joined on 10th Jan.
Similarly for new hire joined on 10th Feb 2022 will be computed as
Prorated amount = (3000/28)*19, where 28 is the number of days in February and 19 is the prorated days as he joined on 10th Feb.