If you work a full-time salaried job, then the chances are that you already know what your annual salary is. However, many people who are not in full-time work may know their part-time earnings, but not their pro rata salary.
Alternatives to full-time salaried work can include people working for a part-time salary, working at an hourly rate, or self-employed freelance workers who have a day rate or a fixed project fee.
Whether you are on a part-time salary, work for an hourly rate, or work freelance, knowing your pro rata salary is important as it allows you to budget according to your earnings around an annual income. Knowing your pro rata salary also allows you to better understand your finances and see if you need to seek any additional work to supplement your income.
In this article, we are going to look at how to calculate a pro rata salary for those on part-time salaries, freelance workers, and those who are paid an hourly rate.
A pro rata salary indicates the amount someone would earn per year if their job was full time. It is a Latin term that means 'in proportion', or 'in equal portions'.
Jobs that are not full time often advertise a 'pro rata' salary. The pro rata salary is given as a guide to a prospective employee as a more relatable figure than their part-time salary. However, many people who work part-time jobs, or freelancers, or those who work full-time on an hourly rate, do not know the full-time equivalent pay for the job they do - that is, their pro rata salary.
So let's jump in and take a look at how to calculate a pro rata salary depending on your working situation.
How do you calculate a pro rata salary?
How to calculate your pro rata salary will depend on whether you work on a part-time salary, at an hourly rate, or as a freelancer. Here we will show you how to calculate your pro rata salary in each instance.
How to calculate a pro rata salary from a part-time salary
If you have a part-time salary, working out your full-time pro rata salary is simple.
- First, divide your part-time salary by 52. This gives you your weekly earnings.
- Then, divide that number by however many hours you work each week, for example, 25. This then gives you your hourly earnings.
- Next, multiply your hourly earnings by 40, as this is the average number of hours for full-time work in the UK.
- And finally, multiply that figure by 52 to get your full time pro rata salary.
For example, if you earned £20,000 per year whilst working for 25 hours a week it would be:
- 20,000 / 52 = 384.61 (your weekly earnings)
- 384.61 / 25 = 15.38 (your hourly earnings)
- 15.38 x 40 = 615.38 (your full time equivalent weekly earnings)
- 615.38 x 52 = 32,000 (your pro rata salary)
So, someone working for 25 hours a week and earning £20,000 per year is on a £32,000 pro rata salary.
How to calculate a pro rata salary from an hourly rate
Calculating a salary pro rata from an hourly rate is again very simply. However, many people who are paid on an hourly rate are not paid for holidays or for sick leave, so factoring in such days may require some tweaking to your final figure.
- First, multiply your hourly rate by 40 if you have a paid one hour lunch break, or by 37.5 if you have a paid half hour lunch break, or by 35 if you do not get a paid lunch break. This gives you your weekly earnings.
- Then, multiply that figure by 52. This gives you your annual salary pro rata
For example, if you earn £15 an hour and have a one hour paid lunch break, the calculation would be:
- 15 x 40 = 600 (your weekly earnings)
- 600 x 52 = 31,200 (your salary pro rata)
So, someone earning £15 an hour with a paid one-hour lunch break is earning £31,200 pro rata.
To factor in holidays or sick days:
- Multiply your hourly rate by eight (if you have a paid hour for lunch). This gives you your day rate.
- Multiply your day rate by the number of days you have missed due to holiday or sickness.
- Subtract that number from your pro rata salary.
Again, if you earned £15 per hour and missed 20 days due to sickness or holidays, the calculation would be:
- 15 x 8 = 120 (your day rate)
- 120 x 20 = 2,400 (your earnings lost on holidays or sick days)
- 31,200 - 2,400 = 28,800 (your pro rata with holidays and sick days subtracted)
So, someone earning £15 per hour who missed 20 days of work in a year, has a pro rata salary of £28,800.
How to calculate a pro rata salary for freelancers
Calculating a pro rata salary for freelancers is very simple, though the final figure may be slightly less accurate than the others. This is because freelancers often work at different rates depending on the project. The difference in day rates can be significant and it is not uncommon to hear of a freelancer earning £150 per day for one job, and £300 per day for another.
However, assuming you earn a consistent day rate, here is how to calculate your pro rata salary:
- First, multiply your day rate by five. This gives you your weekly rate.
- Then, multiply that figure by 52. And voila, you have your pro rata salary.
For example, if you have a day rate of £150, the calculation would be:
- 150 x 5 = 750
- 750 x 52 = 39,000
So, a freelancer with a day rate of £150 would have a pro rata salary of £39,000.
Calculating a pro rata salary is important for people who are not on full-time salaries. It shows you how much your pay is worth if you worked on a full-time contract. Knowing your pro rata salary is important for saving purposes and it can also be crucial in knowing if you need additional work to boost your income.