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Daily Rate Formula:
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The Daily Rate Calculation is used in the Philippines to determine the daily wage from a monthly salary based on the standard 26 working days per month. This calculation is essential for payroll processing, overtime computation, and employee compensation management.
The calculator uses the standard Philippine daily rate formula:
Where:
Explanation: This formula divides the monthly salary by 26 days to determine the equivalent daily rate, which is commonly used for computing daily wages, overtime pay, and other daily-based compensation in the Philippines.
Details: Accurate daily rate calculation is crucial for proper payroll processing, overtime computation, holiday pay calculation, and ensuring compliance with Philippine labor laws and compensation standards.
Tips: Enter the monthly salary in Philippine Pesos (PHP). The calculator will automatically compute the daily rate based on the standard 26 working days per month used in the Philippines.
Q1: Why use 26 days instead of 30 or 31 days?
A: The Philippines uses 26 working days as the standard for monthly salary computation, excluding weekends (Saturdays and Sundays) from the calculation.
Q2: Is this calculation applicable to all employees in the Philippines?
A: This calculation is standard for monthly-paid employees. Daily-paid employees have different computation methods based on actual days worked.
Q3: How is overtime pay calculated using the daily rate?
A: Overtime pay is typically calculated as (Daily Rate / 8 hours) × overtime hours × overtime rate (usually 125% for regular days).
Q4: Are there exceptions to the 26-day rule?
A: Some companies may use different computations based on specific employment contracts or company policies, but 26 days is the standard practice.
Q5: How does this affect holiday pay computation?
A: Holiday pay is often computed based on the daily rate, making accurate daily rate calculation essential for proper holiday compensation.