1. What is Daily Rate Calculation?

The daily rate calculation determines an employee's daily wage based on their monthly salary in Malaysia. This is particularly important for part-time work, overtime calculations, and pro-rated salaries.

2. How Does the Calculator Work?

The calculator uses the standard formula for Malaysia:

Where:

• 26 — Standard number of working days in a month in Malaysia
• Monthly Salary — Gross monthly salary in Malaysian Ringgit (MYR)

Explanation: This calculation divides the monthly salary by 26 working days to determine the daily wage rate.

3. Importance of Daily Rate Calculation

Details: Accurate daily rate calculation is crucial for proper payroll processing, overtime payment calculations, and determining pay for partial month employment.

4. Using the Calculator

Tips: Enter monthly salary in MYR. The value must be greater than 0. The calculator will automatically compute the daily rate based on 26 working days.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 26 days?
A: In Malaysia, the standard calculation uses 26 working days per month (5-day work week).

Q2: Is this calculation used for all employees?
A: This is the standard calculation, but some companies may have different policies for shift workers or those with non-standard work weeks.

Q3: Does this include rest days and public holidays?
A: No, this calculation is based on working days only. Rest days and public holidays are typically paid but not included in the daily rate calculation.

Q4: How is overtime calculated using daily rate?
A: Overtime is typically calculated as 1.5 times the hourly rate (daily rate divided by normal working hours per day).

Q5: Is this calculation affected by EPF or tax deductions?
A: No, this calculates gross daily rate before any deductions.