How to Compute for Daily Rate

There are several methods on how to determine the daily rate for monthly-paid employees. This varies depending on the number of working days of an employee.

Assuming an employee has a monthly income of P 20,000.00. His Daily Rate will be:

1. If he is required to work everyday, including Sundays or rest days, special days and regular holidays

Daily Rate = (Monthly Income x 12 months) / factor 393.50 days/year

where factor 393.50 days/year  = A + B + C + D

where A =  298 ordinary working days (365 days/year -12 regular holiday - 52 rest days - 3 special holidays)

         B =  24 regular holidays (12 regular holidays x 200%)

         C =  67.6 rest days (52 rest days x 130%)

         D =  3.90 special days (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 393.50

Daily Rate =  P 609.91

2. If he is not required to work and are not considered paid on Sundays or rest days, special days and regular holidays. This simply means he is working Mondays to Saturdays.

Daily Rate = (Monthly Income x 12 months) / factor 313 days/year

where factor 313 days/year = A + B + C

where A =  298 ordinary working days (365 days/year -12 regular holiday - 52 rest days - 3 special holidays)

          B =  12 regular holidays

          D =  3 special days (if considered paid); if this is actually worked, this is equivalent to 3.9 days  (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 313

Daily Rate =  P 766.77

Factor 310 may be used instead of 313 if the 3 special holidays are not considered paid

3. If he is not required to work and are not considered paid on Saturdays and Sundays or rest days, special days and regular holidays. This simply means he is working Mondays to Fridays.

Daily Rate = (Monthly Income x 12 months) / factor 261 days/year 

where factor 261 days/year  = A + B + C

where A =  246 ordinary working days (365 days/year -12 regular holiday - 52 Saturdays - 52 rest days - 3 special holidays)

         B =  12 regular holidays 

         C =  3 special days (if considered paid); if this is actually worked, this is equivalent to 3.9 days  (3 special days x 130%)

Daily Rate = (P 20,000.00 x 12) / 261

Daily Rate =  P 919.54

Factor 258 may be used instead of 261 if the 3 special holidays are not considered paid

Did you find this post useful? Did you find the correct method your daily rate is computed? Share your thoughts in the comment box!