1. What is Daily Rate Calculation?

The daily rate calculation converts monthly salary to daily wage according to Philippine labor laws. This is essential for proper wage computation, overtime pay, and benefits calculation.

2. How Does the Calculator Work?

The calculator uses the standard Philippine labor formula:

Where:

• Monthly Rate — The employee's gross 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 by 365 days to get the daily wage rate.

3. Importance of Daily Rate Calculation

Details: Accurate daily rate computation is crucial for proper payment of overtime, holiday pay, night differential, and other benefits under Philippine labor law.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of 260 (working days)?
A: Philippine labor law requires 365-day calculation to ensure proper holiday and rest day pay computations.

Q2: Does this include 13th month pay?
A: No, 13th month pay is calculated separately as it's equivalent to 1/12 of annual basic salary.

Q3: How is this different from hourly rate?
A: Hourly rate would divide the daily rate by 8 (standard work hours per day).

Q4: Is this applicable to all employees?
A: This applies to monthly-paid employees. Daily-paid workers have different computation.

Q5: What about leap years?
A: The standard formula uses 365 days for consistency, though actual leap years have 366 days.