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Simply put, pro-rata is a Latin term which means proportional. Think pie charts.
It’s commonly used when talking about part-time work; you get a proportion of a full salary based on the number of hours you work.
If the full salary for your job is £30,000 a year for a 40-hour week, but you only work 20 hours a week, you would get a pro-rata salary of £15,000 per year.
1. Figure out your hourly rate
Annual salary / full-time hours = your hourly rate
2. Work out how many hours you worked
You should either keep a note of this yourself or agree on the number of hours with your employer
3. Calculate your salary
Hourly rate x pro-rata hours = your wage
You might be pro-rata because you:
Most of the time, you’re getting the same benefits as full-time employees but pro-rated.
For example, if your full-time colleague gets 28 days of annual leave and you work half the hours they do, you might only get 14 days.
The best thing to do is to check with someone so you know exactly what you’re owed and don’t miss out!
Although you’re not a full-time employee, you’ll probably still be PAYE, meaning your employer will take the amount of tax you owe from your salary and pay HMRC directly.
If you work pro-rata but you’re also self-employed or not paying tax through PAYE, then you will need to let HMRC know what you’re earning, especially if it’s over the Personal Allowance threshold of £12,570.
It’s easy to feel stressed when dealing with taxes. But good news! Our accredited accountants are here to help you. So, if you’re confused or have any questions, you can get one-off, personalised tax advice for just £119, all in. Learn more about it here.
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