1. What is Daily Rate Calculation?

The daily rate calculation converts an annual salary into an equivalent daily wage by dividing the annual amount by 365 days. This is commonly used in the Philippines for various employment and financial calculations.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Annual Salary — Total yearly compensation in Philippine Pesos (PHP)
• 365 — Number of days in a year

Explanation: This calculation assumes equal payment for each day of the year, including weekends and holidays.

3. Importance of Daily Rate Calculation

Details: Daily rate is important for contract workers, pro-rated salary calculations, leave conversions, and understanding equivalent daily earnings from annual compensation.

4. Using the Calculator

Tips: Enter your annual salary in PHP. The value must be positive. The result will show your equivalent daily rate in PHP per day.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of working days?
A: This calculation provides the true daily equivalent of annual salary, not just workday compensation.

Q2: Is this applicable for monthly-paid employees?
A: Yes, you can calculate the annual equivalent first (monthly salary × 12) then divide by 365.

Q3: Does this include benefits and bonuses?
A: Only if they're part of the guaranteed annual compensation amount entered.

Q4: How accurate is this for leap years?
A: For leap years, you could divide by 366, but the difference is minimal (0.27%).

Q5: Can I use this for part-time work calculations?
A: Yes, if you know the pro-rated annual salary for the part-time work.