1. What is the Monthly to Daily Rate Calculation?

The monthly to daily rate calculation converts a monthly salary into an equivalent daily wage in the Philippines. This is commonly used for contractual workers, daily-paid employees, or when prorating salaries.

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

3. Importance of Daily Rate Calculation

Details: Calculating the daily rate is essential for proper payroll computation, especially for part-time workers, contractual employees, or when computing pro-rated salaries for incomplete months of work.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of 260 (working days)?
A: This calculation provides the actual daily rate including weekends. For working day rates, divide by 260 instead.

Q2: Is this calculation compliant with Philippine labor laws?
A: Yes, this is the standard method recognized by the Philippine Department of Labor and Employment (DOLE) for converting monthly salaries to daily rates.

Q3: How does this differ from hourly rate calculation?
A: For hourly rates, you would further divide the daily rate by the standard working hours per day (usually 8 hours).

Q4: Should bonuses be included in the monthly rate?
A: No, only the basic monthly salary should be used for this calculation unless specified otherwise in employment contracts.

Q5: What about leap years?
A: For more precise calculations during leap years, you can use 366 days instead of 365.