When an employee works for only part of a month,such as joining or leaving mid-month,their salary needs to be prorated. This means calculating pay based on the proportion of days worked compared to the full month.
Understanding Pro-Rata Pay
Pro-rata pay ensures employees are compensated fairly for the actual time worked. In Taiwan, this typically applies when:
An employee onboards or offboards mid-month
An employee does not work the full scheduled hours in a pay period
Taiwan Salary Cycle
Monthly cycle: Calendar month (1st to 28th/30th/31st)
Statutory reference:
Month = 30 days
Year = 365 days
(As per Article 123 of the Civil Code)
Prorated Salary Calculation
For full-time employees working an incomplete month:
Formula:
Prorated Salary = Round(Base Salary ÷ 30 × X, 0)
Where:
Base Salary = agreed monthly salary
X = number of calendar days worked in that month
Example:
Employee starts on 9 May with a monthly salary of TWD 30,000.
Days worked: 23 (May 9–31)
Calculation:
30,000 ÷ 30 × 23 = TWD 23,000
Other Compensation (e.g., Allowances)
No statutory rule, but common practice follows the same formula as base salary:
Allowance = Round(Base Allowance ÷ 30 × X, 0)
Annual Bonus Calculation
No statutory rule, but common practice is:
Prorated Bonus = Round(X ÷ 365 × Full-Year Entitlement, 0)
Where:
X = number of calendar days employed in the year
Legal Reference
Article 123 of the Civil Code:
A month is reckoned as 30 days, a year as 365 days for calculation purposes.