How to use this calculator
New hires rarely start on the first day of a pay period, and people rarely leave on the last. Prorating a salary sounds simple, but employers use different methods, and the method you pick changes the paycheck. Picking one method and applying it the same way every time matters more than which one you choose.
Use the pay period mode for a first or last paycheck, and the year mode for a mid-year start, an annual bonus, or a budget forecast. For final pay timing rules, see our offboarding guide.
- Choose a partial pay period or a partial year.
- Enter the annual salary.
- For a pay period, enter the scheduled workdays in the period and the days the employee worked or was employed.
- For a partial year, enter the start and end dates. The calculator counts calendar days, including both dates.
How it's calculated
Workday method = (annual salary / pay periods per year) x days worked / workdays in the period
Calendar-day method = annual salary x days employed / days in the year
The workday method is common for first and last paychecks, because it treats every workday as equal. The calendar-day method suits partial-year amounts, such as prorated bonuses.
Worked example
A new controller earning $75,000 starts on a Wednesday in the second week of a biweekly pay period, so she works 6 of the 10 workdays. Full biweekly pay is $2,884.62. Her first paycheck is $2,884.62 x 6 / 10 = $1,730.77.
The same employee is eligible for a bonus prorated by days employed in her first year. Starting March 16, 2026, she is employed for 291 of 365 days, so 79.7 percent of the full bonus.
Rules to know
For exempt employees, the FLSA salary basis rule generally requires full salary for any week in which they do any work. Employers may prorate pay in the initial and final weeks of employment, and for weeks of unpaid FMLA leave, under 29 CFR 541.602. Deducting for partial days of absence is generally not allowed for exempt employees, though PTO can be used.
Final paychecks must meet state deadlines, which can be the last day of work in states such as California. Check the resignation acceptance template for how to explain final pay in writing.
This is general information for US employers, not legal or tax advice. Rates and rules change and vary by state and city, so confirm current figures with the agency or a qualified advisor.
Common mistakes
- Switching methods from one employee to the next.
- Docking an exempt employee's salary for a partial day in the middle of employment.
- Counting weekends in a workday-method calculation.
- Prorating a bonus without a written rule in the plan.
Email templates that go with this
Once you have the number, these templates help you explain it to employees, candidates, or managers.
Where to go from here
A calculator answers one question. The right process and software keep the numbers right every pay period.
Frequently asked questions
How do you prorate a salary for a new hire?
Can I prorate an exempt employee's salary?
Should I use calendar days or workdays?
Is PTO prorated for new hires too?
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.