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
Comments
0 comments
Article is closed for comments.