How are Salaries Prorated in Nigeria?

Salary proration in Nigeria is a method used to calculate an employee's pay when they have not worked the full month. This could happen due to starting or leaving a job mid-month, or taking unpaid leave. The process ensures that the employee is compensated fairly for the days they actually worked.


Here’s how salary proration is calculated:

  1. Base Salary: Start with the employee's agreed-upon monthly salary.

  2. Determine the Number of Days in the Month: Identify the total number of calendar days in the specific month. This is important because the number of days varies between months (e.g., 28, 29, 30, or 31 days).

  3. Calculate the Daily Rate: Divide the monthly salary by the total number of days in the month. This gives the daily rate of pay.

  4. Multiply by the Days Worked: Finally, multiply the daily rate by the number of days the employee worked in that month to get the prorated salary.


Example Calculation:

Let’s say an employee earns ₦100,000 per month and has worked 15 days in a 30-day month. Here’s the step-by-step calculation:

  • Monthly Salary: ₦100,000
  • Days in the Month: 30 days
  • Daily Rate: ₦100,000 / 30 = ₦3,333.33
  • Prorated Salary: ₦3,333.33 * 15 days = ₦50,000


So, the employee’s prorated salary for working 15 days in that month would be ₦50,000.

This method ensures that the employee is paid accurately for the number of days they actually worked within that month.

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