1. What is Daily Rate Calculation?

The daily rate calculation converts a monthly salary to a daily wage amount, which is commonly used in the Philippines for SSS contributions and other employment computations.

2. How Does the Calculator Work?

The calculator uses the following 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 calculation spreads the annual salary evenly across all days of the year to determine the daily wage equivalent.

3. Importance of Daily Rate Calculation

Details: The daily rate is particularly important for SSS contributions in the Philippines, as contribution brackets are based on daily wage ranges rather than monthly salaries.

4. Using the Calculator

Tips: Enter the monthly salary in Philippine Pesos (PHP). The value must be greater than 0. The calculator will compute the equivalent daily rate.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of 260 (working days)?
A: For SSS purposes, the calculation uses calendar days to determine contribution brackets, not just working days.

Q2: Is this the same as daily wage for payroll?
A: No, this is specifically for SSS computations. Actual daily wage for payroll may differ based on company policy.

Q3: Does this include 13th month pay?
A: No, this calculation is based on basic monthly salary only. Additional compensation should be calculated separately.

Q4: How often should this be recalculated?
A: Recalculate whenever there's a change in monthly salary to ensure accurate SSS contributions.

Q5: Is this applicable to all employees?
A: Yes, this calculation method applies to all SSS-covered employees in the Philippines, regardless of employment type.