1. What is Daily Rate Calculation?

The daily rate calculation determines how much an employee earns per day based on their monthly salary. In Malaysia, companies typically use either 26 working days or 30 calendar days for this calculation.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Monthly\ Salary \) — Gross monthly salary in Malaysian Ringgit (MYR)
• \( Days \) — Either 26 (working days) or 30 (calendar days)

Explanation: The calculation divides the monthly salary by the number of days to determine the daily earnings rate.

3. Importance of Daily Rate Calculation

Details: Daily rate calculation is essential for determining overtime pay, unpaid leave deductions, pro-rated salaries for new hires/resignees, and calculating payments for part-time or contract workers.

4. Using the Calculator

Tips: Enter your monthly salary in MYR and select either 26 days (common for working days calculation) or 30 days (common for calendar days calculation). The calculator will show your daily rate.

5. Frequently Asked Questions (FAQ)

Q1: Which is better - 26 days or 30 days calculation?
A: 26 days is typically used for working days (Monday-Friday), while 30 days is used for calendar days. Check your employment contract or company policy.

Q2: Why are there two different methods?
A: The 26-day method accounts only for working days, while the 30-day method includes weekends. Different companies use different methods based on their payroll policies.

Q3: Which method gives a higher daily rate?
A: The 26-day method gives a higher daily rate (since you're dividing by fewer days), but both methods should result in the same monthly salary.

Q4: Is this calculation specific to Malaysia?
A: While the concept is universal, the 26-day calculation is particularly common in Malaysia's payroll practices.

Q5: How does this affect overtime calculations?
A: Overtime rates are typically calculated based on your daily rate divided by normal working hours per day.