1. What is the Daily Rate Calculation?

The daily rate calculation determines an employee's per-day compensation in Malaysia, including both their pro-rated monthly salary and lunch allowance. This is commonly used for contract workers or part-time employees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• 26 — Standard number of working days in a month in Malaysia
• Monthly Salary — Gross monthly salary in MYR
• Lunch Allowance — Daily meal allowance in MYR

Explanation: The formula divides the monthly salary by 26 working days and adds the daily lunch allowance to get the total daily compensation.

3. Importance of Daily Rate Calculation

Details: Calculating daily rates is essential for contract workers, part-time employees, and for determining overtime pay or leave deductions in Malaysia's labor market.

4. Using the Calculator

Tips: Enter monthly salary in MYR and daily lunch allowance in MYR. Both values must be positive numbers.

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 lunch allowance taxable?
A: In Malaysia, meal allowances up to RM50 per day are generally tax-exempt if given for working purposes.

Q3: Does this include EPF and SOCSO?
A: No, this is a gross calculation. Deductions would be calculated separately based on the gross amount.

Q4: Can I use this for overtime calculations?
A: For overtime, you would typically use the hourly rate derived from the daily rate divided by standard working hours.

Q5: Is this calculation standard across all industries?
A: While 26 days is common, some industries may use different calculations. Always check your employment contract.