Daily rate = Monthly Salary / 30
| Method | Divisor | Daily Rate | Pro-Rata Pay |
|---|
Salary will be calculated from this date to month-end
Most companies include the joining and last working day in calculations. Confirm with your HR.
| Method | Divisor | Daily Rate | Pay |
|---|
Number of unpaid leave days in this month
How Is Pro-Rata Salary Calculated in India?
Pro-rata (Latin for "in proportion") salary is the proportional pay for the number of days an employee actually worked in a month. It applies whenever an employee does not work the entire calendar month: joining mid-month, leaving before month-end, or taking unpaid leave (Loss of Pay).
The Universal Formula
Divisor: 30 (most corporate), 26 (factories), or actual days in the month
Days Worked: depends on scenario and whether joining/exit day is included
Three Methods Used in India
30-Day Method
Divide monthly salary by 30 regardless of the actual number of days in the month. Used by most private sector IT, BFSI, and services companies. Simple and consistent across all months.
26-Day Method
Divide monthly salary by 26 (treating 4 Sundays as non-working days per month). Common in manufacturing (factories now fall under the OSH Code, 2020, which replaced the Factories Act from 21 November 2025) and some retail establishments. Gives a higher daily rate.
Actual Days Method
Divide monthly salary by the actual number of calendar days in that month (28, 30, or 31). Used in government and public sector undertakings. Daily rate varies by month; February gives the highest daily rate.
Example: Mid-Month Joiner
Daily rate: Rs. 60,000 / 30 = Rs. 2,000 per day.
Pro-rata salary: Rs. 2,000 x 17 = Rs. 34,000 for August.
Under 26-day method: Rs. 60,000 / 26 = Rs. 2,308/day. Rs. 2,308 x 17 = Rs. 39,231.
Under actual-days method: Rs. 60,000 / 31 = Rs. 1,935/day. Rs. 1,935 x 17 = Rs. 32,903.
Example: Loss of Pay (LOP) Deduction
Net salary for July = Rs. 50,000 - Rs. 5,000 = Rs. 45,000.
Under 26-day method: (Rs. 50,000 / 26) x 3 = Rs. 5,769 deduction. Net = Rs. 44,231.
Note: Repeated LOP can reduce your EPF contributions for the month, which may affect PF accumulation slightly.
Which Method Does My Company Use?
The calculation method is typically stated in your offer letter, employment contract, or HR policy document. If not stated, most Indian corporate employers use the 30-day method. You can ask your HR or payroll team to confirm. The method should be applied consistently across all months.
Does LOP Affect PF and Gratuity?
Yes, partially. EPF contributions are based on basic salary (not gross), so LOP that reduces your basic salary will reduce your EPF contribution for that month. However, gratuity is based on your last drawn basic salary, so occasional LOP does not affect gratuity unless your basic salary itself is reduced. Professional tax is generally unaffected by LOP as it is based on gross monthly income for the month.
Example: Quick Calculator Sample
26-day method: Rs. 50,000 / 26 = Rs. 1,923 a day x 15 = Rs. 28,846.
Actual-days method: Rs. 50,000 / 31 = Rs. 1,613 a day x 15 = Rs. 24,194.
Related tools
- Loss of pay calculator: see LOP with PF, ESI and NCP days in more detail.
- Full and final settlement calculator: add leave encashment, gratuity and notice pay on exit.
- Notice period buyout calculator: work out the cost of a shorter notice period.
- Salary slip generator: produce a payslip for the part month.
Filling a role after an exit? AI resume screening can shorten the time to shortlist.