How do you calculate salary?

[wisenheimer]

Let's say my salary is P100,000 per month, paid monthly (or twice a month, though I'm not sure it makes a difference). Assume that I start on July 11 and receive my first paycheck at the end of the month (July 31). How is my gross salary calculated? If I started on July 1, then its easy. But if I start in between pay periods, how is it calculated?

[Krakista]

Multiply your monthly salary by 12, divide by the total of working days in a year and include also the legal holidays. With that you'll arrive at your daily salary.

i.e:

100,000 x 12 = 1,200,000

1,200,000 / 313 = 3833.8658

* 313 days if you're working Mondays to Saturdays, 261 if Mondays to Fridays.

[sam7268]

313 ba? i thought it was 314?

[wisenheimer]

Are you sure? Someone told me something similar, but that the denominator would be the total number of days in a year (365) and the numerator would be the total number of days elapsed since you started work in that month, assuming you started sometime after the first of the month. If you started on the first, it would just be P100,000.

I'm confused.

[wisenheimer]

Are you sure? Someone told me something similar, but that the denominator would be the total number of days in a year (365) and the numerator would be the total number of days elapsed since you started work in that month (in this case, starting on July 11 means 21 days total in the month of July). If you started on the first, it would just be P100,000.

I'm confused.

[Krakista]

Originally posted by sam7268
313 ba? i thought it was 314? It's 313 for year 2002. 314 is for leap years. There are 52 weeks in a year, therefore you also have 52 restdays.

Originally posted by wisenheimer
Are you sure? Someone told me something similar, but that the denominator would be the total number of days in a year (365) and the numerator would be the total number of days elapsed since you started work in that month, assuming you started sometime after the first of the month. If you started on the first, it would just be P100,000.

I'm confused. Surely denominator shouldn't be 365 unless you work everyday of the year or they have agreed to pay you on your restday even if you don't work. I've read the DOLE circular on that (I had cut it from the papers before) and I' did payroll software.

[rains_delight]

Most companies have cut off dates in preparing their payroll. It doesn't mean that you are being paid exactly from the 1st up to the 15 or 16 to 30th of every month.


If you started on July 11, of course you will receive your salary from July 11 to 15.

In our case, our denominator is 365,l although we only require to go to work from Monday to Friday.

[Krakista]

Originally posted by rains_delight
In our case, our denominator is 365,l although we only require to go to work from Monday to Friday. So how is overtime computed if one comes to work whole day on Saturday? Does one get paid at least an extra day?

[floreno]

Sa amin ganito ang scheme:
It depends on the cut off dates na sinet ng kompanya mo.
In our case, Every 10th and 25th day of the month are
cut-off days.

Ex. Worker A was newly hired on Sept. 2 getting a PHP 20,000/month compensation.

His first Paycheck would be computed as:

Salary per day = 20,000/22 Days = 909.09 Pesos
Salary per day = 909.09 /8 hours = 113.63 Pesos

From Sept 2 - Sept 10 = 7 Days (Di sya pumasok on weekends)

Net Salary = 909.09*7 = PHP6,363 + Allowances - Usual Deductions

Next Paycheck would compute for a one half of his monthly basic salary - deductions + allowances.

For Overtimes ganito naman:

For Regular OT: OT hours garnered * Salary per Hour * 1.25
(ex. 5hrs * 113.63 * 1.25 = PHP 710.18). This would add up to
your gross.(tax would be computed on OTs)

On Saturday, sunday and Holidays-the same procedure will follow with different multiplier rate.

Saturday = 1.3
Sunday = 2
Saturday and a Holiday = 2.5
Sunday and a Holiday = 3.0