1. What is Daily Rate Calculation?

The daily rate calculation converts a monthly salary to an equivalent daily wage in the Philippines. This is commonly used for contract workers, part-time employees, and payroll computations.

2. How Does the Calculator Work?

The calculator uses the standard Philippine formula:

Where:

• Monthly Rate — The employee's monthly salary in Philippine Pesos
• 12 — Number of months in a year
• 365 — Number of days in a year

Explanation: This formula annualizes the monthly salary then divides it by the number of days in a year to get the daily rate.

3. Importance of Daily Rate Calculation

Details: Accurate daily rate computation is essential for proper payroll processing, overtime calculations, and compliance with Philippine labor laws.

4. Using the Calculator

Tips: Enter the monthly salary in Philippine Pesos. The value must be greater than 0. The result will show the equivalent daily rate.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of working days?
A: This calculation provides the base daily rate including rest days. For actual work day rates, different computations apply.

Q2: Is this the same as per diem?
A: No, this is the base salary conversion. Per diem usually refers to daily allowances for expenses.

Q3: How does this differ from hourly rate?
A: Hourly rate would require dividing the daily rate by the standard working hours per day (usually 8 hours).

Q4: Are there other methods to compute daily rate?
A: Some companies use 260 working days per year, but the 365-day method is standard in Philippine labor computations.

Q5: Does this include benefits?
A: No, this computes only the base salary. Benefits like SSS, PhilHealth, etc. would be separate computations.