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Configuring automatic proration for pay elements

Configure fixed-amount pay elements to automatically prorate when an employee joins or leaves partway through a pay period.

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Written by Jordan Hutchinson
Updated over a week ago

You can now configure fixed-amount pay elements to automatically prorate when an employee joins or leaves partway through a pay period. This removes the need to manually calculate and adjust element values for mid-period starters and leavers.

Which elements can be prorated?

The proration toggle is available for fixed-value elements only.

The toggle is not available for unit-driven elements.


How to enable proration.

  1. From the company tile, click Manage Pay Elements.

  2. Select the element you want to configure.

  3. Click the toggle Prorate This Element.

  4. Save your changes.

πŸ“ŒNote: All existing elements have proration set to OFF by default. You must explicitly enable it for each element that should prorate. New elements also default to OFF.


When does proration apply?

With the toggle enabled, the element automatically prorates when:

  • An employee joins mid-period β€” based on their start date.

  • An employee leaves mid-period β€” based on their leave date.

  • A recurring element ends mid-period β€” based on the element's end date.

For example, if an employee with a Β£600/month car allowance leaves on the 15th of the month, the system will automatically calculate and pay the prorated amount for that period. Similarly, if a recurring allowance has an end date falling mid-period, only the proportional amount up to that date is paid.


How is proration calculated?

Prorated elements display the prorated value only, not the full amount with a deduction. For example, a Β£ 600-per-month car allowance prorated for a mid-month leaver displays as "Car Allowance: Β£300".

The prorated value appears at different stages of the payroll process depending on where you look:

Before calculation:

  • Team tab (list mode) β€” shows the prorated value.

  • Preview pay statement flyout β€” shows the prorated value.

  • Changes tab β€” shows the original (non-prorated) value.

After calculation:

  • Changes tab β€” shows the original (non-prorated) value.

  • Reports β€” shows the prorated value.

After the pay run is finalised:

  • Changes tab β€” shows the prorated value.

  • View pay statement β€” shows the prorated value.

  • Reports β€” shows the prorated value.

An icon is displayed alongside elements where the Prorate This Element toggle is enabled. This icon indicates the setting is turned on; it does not dynamically reflect whether proration has actually been applied for that specific employee in the current period.


Important notes

  • Proration is controlled per element; you choose exactly which elements should prorate.

  • Proration applies from the current period onwards; it does not recalculate historical periods.

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