How Do I Compute My Daily Rate

How Do I Compute My Daily Rate?
https://support.payrollhero.com/knowledge-base/how-do-i-compute-my-daily-rate/#:~:text=Daily
%20Rate%20%3D%20(Monthly%20Rate%20X,working%20days%20in%20a%20year.
Here’s how to compute the employee’s daily rate.
Daily Rate = (Monthly Rate X 12) / Total working days in a year.
Php 575.08 = (Php 15,000 X 12) / 313 if working Mondays to Saturdays
Php 689.66 = (Php 15,000 X 12) / 261 if working Mondays to Fridays
How to Calculate for the Daily Rate from Your Monthly Salary?
https://support.payrollhero.com/knowledge-base/how-do-i-compute-my-daily-rate/#:~:text=Daily
%20Rate%20%3D%20(Monthly%20Rate%20X,working%20days%20in%20a%20year.
Basic salary refers to the monetary amount paid to an employee, excluding added bonuses or deductions
from absences or incurred late minutes. In case you are new to payroll, your basic salary serves as the
basis for the computation of your daily rate. For monthly-paid employees, here is how it is computed:
(Basic Monthly Salary x 12) / (Total Working Days in a Year) = DAILY RATE
Important: The total working days in a year (TWD) may vary from one employee to another. If an
employee regularly works from Mondays to Saturdays, his expected TWD in a year is 313 days. While if
an employee only works from Mondays to Fridays, then his TWD in a year is 261 days. You can also
check out the examples below:
Basic Salary: ₱ 23,000

Total Working Days in a Year: 261
Daily Rate: ?
(23,000 x 12) / (261) = ₱ 1,057.47
Basic Salary: ₱ 25,000

Total Working Days in a Year: 313
Daily Rate: ?
(25,000 x 12) / 313 = ₱ 958.47
I hope this information helps! For any further questions or concerns you may have regarding this, feel
free to message us at [email protected]. We look forward to hearing from you.
FREQUENTLY ASKED QUESTIONS ON LABOR STANDARDS http://www.dptlaw.asia/forms/PRIMERS,
%20GUIDES%20&%20FAQs/FAQs%20on%20EMPLOYEE%20WAGES%20AND%20BENEFITS.pdf
1. How is the equivalent monthly rate (EMR) of the monthly-paid and dailypaid employees computed?
Under the Labor Code, private sector workers should receive the applicable
minimum wages not lower than those prescribed by the Regional Boards under existing
wage orders. At present, the prescribed minimum wages are for normal working hours,
which shall not exceed eight hours per day.
For monthly-paid employees
The factor 365 days in a year is used in determining the equivalent annual salary
of monthly-paid employees. To compute their EEMR, the procedure is as follows:
EEMR = Applicable Daily Rate x 365 days
12
Where 365 days = 298 days - Ordinary working days
52 days - Sundays/Rest days
12 days - Regular Holidays
3 days - Special days
365 days -Total equivalent no. of days in a year
For daily-paid employees
The following formula may be used in computing the EMR of different groups of
daily-paid employees for purposes of entitlement to minimum wages and allied benefits
under existing laws:
(a) For those who are required to work everyday including Sundays or rest days,
special days and regular holidays.

EEMR = Applicable Daily Rate x 392.50 days
12
Where 393.50 days = 299.00 days - Ordinary working days
22.00 days - 12 Regular holidays x 200%
67.60 days - 52 rest days x 130%
3.90 days - 3 special days x 130%
392.50 days Total equivalent no. of days in a year
(b) For those who do not work and are not considered paid on Sundays or rest
days.
EEMR = ADR x 313 days
12
Page | 2
12 days - Regular holidays
313 days - Total equivalent no. of days in a year
(c) For those who do not work and are not considered paid on Saturdays and
Sundays or rest days.
EEMR = ADR x 261 days
12
12 days - Regular holidays
261 days - Total equivalent number of days

Computing for your hourly rate
https://www.efrennolasco.com/compute-hourly-rate/
Now in computing for your hourly rate, you would need the following variables:
 Monthly Rate
 Total number of working days in a year
 Your total number of working hours in a day
NOTE: The total number of working hours in a day may vary from person to person or from company to
company. If you’re unsure of how much hours you work for in a day, inquire about it first. Furthermore,
if you think you’re working for more than five (5) days a week, inquire about it as well.
Now that you know all of your variables, it’s time for you to know the formula on how you can compute
for your hourly rate. In the examples we’ll provide, let’s assume that the monthly rate is Php20, 000.00;
the total number of working days in a year is 261 days; and lastly, the total number of hours in a day is 8
hours.
The formula would be: Monthly Rate x 12/(total number of working days)/(total number of working
hours) = hourly rate
 20000 x 12 / 261 / 8
 240000/ 261 /8
 919.5 / 8
 115 = hourly rate
By putting the formula to work, we arrive at a Php115.00 hourly rate if the basic salary of the employee is
Php20, 000.00 per month.
Read: How to Compute your Salary during Regular Holidays and Special (Non-Working) Days?
But what if the employee is paid on a daily basis?
If the employee is paid on a daily basis, we’ll follow the same formula; same procedure. We just have to
take out the daily rate and divide it by the number of hours.
For example, if your daily rate is Php700.00 and you have to work for nine (9) hours a day, the formula
would be:
 Daily rate / Number of hours

 700 / 9
 77.8 = hourly rate
There you go, you now know how to compute for your daily rate. You just have to know the variables
beforehand so that you can properly calculate it.
Wait, how did we know the total number of working days in a year?
We all know that a calendar year has 365 days, so why is the total number of working days only 261? We
should, of course, exclude the weekends and the holidays. In a 7-day week, we’re only required to go to
work at least 40 hours. That means for 5 days, we only work 8 hours every day.
In addition to that, the Department of Labor and Employment has the formula on how that is computed.
Click on this link to access the formula for both non-muslims and Muslims.
Why is it important that I know my hourly or even my daily rate?
Our employers are not perfect; they commit mistakes as well especially if the employees of a certain
corporation are thousands. By you knowing how you should properly compute for your daily or hourly
rate, you get to see whether or not there are errors on your payslip when payday is just right around the
corner.
If you notice an error within the computation, let your immediate supervisor aware about this right away
so they can help you with the modifications and with the corrections. You can’t expect that your pay is
always right and is always spotless; people and the payroll team make mistakes, too.
Read: How to compute 13th-month pay

But now that you’re equipped with the knowledge, you can do the computation on your own without
asking the help of someone from your payroll department. You can refer to our guide/s listed here for
further questions, clarifications, and assistance.

How Do I Compute My Daily Rate

Uploaded by

Copyright:

Available Formats

How Do I Compute My Daily Rate

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How Do I Compute My Daily Rate

Uploaded by

Copyright:

Available Formats

How Do I Compute My Daily Rate?

Here’s how to compute the employee’s daily rate.

Daily Rate = (Monthly Rate X 12) / Total working days in a year.

Php 575.08 = (Php 15,000 X 12) / 313 if working Mondays to Saturdays

Php 689.66 = (Php 15,000 X 12) / 261 if working Mondays to Fridays

Basic Salary: ₱ 23,000

(23,000 x 12) / (261) = ₱ 1,057.47

Basic Salary: ₱ 25,000

(25,000 x 12) / 313 = ₱ 958.47

which shall not exceed eight hours per day.

For monthly-paid employees

of monthly-paid employees. To compute their EEMR, the procedure is as follows:

EEMR = Applicable Daily Rate x 365 days

Where 365 days = 298 days - Ordinary working days

52 days - Sundays/Rest days

12 days - Regular Holidays

3 days - Special days

365 days -Total equivalent no. of days in a year

For daily-paid employees

under existing laws:

special days and regular holidays.

Where 393.50 days = 299.00 days - Ordinary working days

22.00 days - 12 Regular holidays x 200%

67.60 days - 52 rest days x 130%

3.90 days - 3 special days x 130%

392.50 days Total equivalent no. of days in a year

EEMR = ADR x 313 days

Where 313 days = 298 days - Ordinary working days

12 days - Regular holidays

3 days - Special days

313 days - Total equivalent no. of days in a year

Sundays or rest days.

EEMR = ADR x 261 days

Where 261 days = 246 days - Ordinary working days

12 days - Regular holidays

3 days - Special days

261 days - Total equivalent number of days

 Daily rate / Number of hours

Why is it important that I know my hourly or even my daily rate?

Read: How to compute 13th-month pay

You might also like