This provides an overview of PeopleXD’s standardized approach to calculating salaries and allowances for salaried employees, including how partial pay periods are managed.
Standard salary calculations
Monthly salary calculation
For salaried employees, PeopleXD calculates monthly salary by dividing the annual salary by 12. This ensures the annual salary is distributed evenly across all months, regardless of the number of working days in each month.
Example: An employee with an annual salary of £30,000 receives £2,500 per month (£30,000 ÷ 12).
Weekly salary calculation
For salaried employees, PeopleXD calculates weekly salary by dividing the annual salary by 52.
Example: An employee with an annual salary of £30,000 receives £576.92 per week (£30,000 ÷ 52).
How partial pay periods are handled
When changes occur mid-period, PeopleXD pro-rates salary and allowances based on the actual days worked at each rate. This applies to:
Mid-period joiners.
Leavers.
Salary or allowance changes.
Example: If a salary increase takes effect mid-month, the system calculates pay for the days before the change at the old rate, and days after the change at the new rate.
The exact calculation method depends on your Pay Group configuration, which determines how partial periods are managed.
Pay group configurations that affect pro-rata calculations
The specific rules for pro-rating salaries and allowances are determined by your Pay Group settings. The key setting that impacts these calculations is Pay Salaries and Allowances on Days Worked.
Find setting
To find the relevant setting, follow the steps below.
Click Settings then click Pay Groups.
From the dropdown menu, select the relevant pay group.
Double-click Next Page.
If this setting is enabled
The calculation is based on working days: Annual Salary ÷ Working days in the year × Days worked in the period
📌Note: Working days in the year are configured at pay group level and can be viewed at: Payroll Dashboard › Settings › Pay Groups › select Pay Group › Days In Year. Days worked in the period refers to Monday–Friday days worked at the relevant rate.
Example:
Annual Salary: 30,000.
Pay Group Days In Year: 260.
15 working days (Monday–Friday) between 11 and 31 May 2026.
Calculation: 30,000 ÷ 260 × 15 = 1,730.77
If this setting is disabled
The calculation is based on calendar days: Period Salary ÷ Calendar days in the period × Calendar days at each rate
Example:
Annual Salary: 30,000.
Monthly paid employee.
21 calendar days between 11 and 31 May 2026.
Calculation: 30,000 ÷ 12 ÷ 31 × 21 = 1,693.55
Weekly payrolls: The impact of payroll calendar and offset days
For weekly and fortnightly payrolls, PeopleXD uses the Payroll Calendar in pro-rata calculations. The Week End Date in the calendar determines the end of the week.
View the payroll calendar
To view the payroll calendar, follow the steps below.
Click Settings then in the Company Parameters section, click Calendar.
From the dropdown menu, select the relevant company.
Understanding offset days
If the employee's Pay Group has Offset Days, these are added to or subtracted from the Payroll Calendar Week End Date.
Example: If the Week End Date is 10 May 2026, and the Pay Group has two Offset Days, then the end of the week would be treated as 12 May 2026.
View Pay Group offset days
Click Settings then click Pay Groups.
From the dropdown menu, select the relevant pay group.
Click Next Page then click Offset Days.
Exceptions
Percentage-based allowances are not subject to the usual pro-rata rules. If a percentage-based allowance is active within a period, then the relevant percentage will be applied to the relevant calculation elements paid within the current period.
Important considerations
⚠️Warning: Pay Group settings are highly configurable and customised to individual customer requirements at the implementation stage. It is advisable to seek consultation before updating Pay Group pro-rata settings, as any updates may have unintended consequences on payroll calculations.