1. What is Daily Rate Calculation?

The daily rate calculation converts a monthly salary to an equivalent daily wage, which is commonly used in the Philippines for contractual employees and daily wage computations.

2. How Does the Calculator Work?

The calculator uses the standard formula:

Where:

• Monthly Rate — The employee's monthly salary in Philippine Pesos (PHP)
• 12 — Number of months in a year
• 365 — Number of days in a year (not accounting for leap years)

Explanation: This calculation spreads the annual salary evenly across all days of the year to determine the daily equivalent.

3. Importance of Daily Rate Calculation

Details: Daily rate computation is essential for contractual employees, pro-rated salary calculations, overtime pay computations, and comparing job offers with different payment structures.

4. Using the Calculator

Tips: Enter the monthly salary in Philippine Pesos. The calculator will compute the equivalent daily rate based on 365 days per year.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of working days?
A: This calculation provides the absolute daily rate, not limited to working days. For per-working-day rates, divide by the actual number of working days in a year.

Q2: Is this the same as the "daily wage" under Philippine labor law?
A: No, the statutory minimum daily wage is set by regional wage boards. This calculation converts monthly salaries to daily equivalents.

Q3: Should I use 366 days for leap years?
A: For most payroll purposes, 365 days is standard, but some companies may use 366 in leap years for more precise calculations.

Q4: How does this differ from monthly salary divided by 22?
A: Dividing by 22 (typical working days/month) gives a per-working-day rate, while this calculation spreads the salary across all calendar days.

Q5: Can I use this for part-time work calculations?
A: Yes, this can help determine daily rates for part-time work based on equivalent full-time monthly salaries.