1. What is the Daily Rate Calculation?

The daily rate calculation converts a monthly contract salary to a daily rate by dividing by 26 working days (standard in Malaysia). This helps contractors and employers determine fair daily compensation.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Monthly Rate — The contracted monthly salary in Malaysian Ringgit (MYR)
• 26 — Standard number of working days per month in Malaysia

Explanation: This calculation assumes a 6-day work week (Monday-Saturday) which is common for many contract positions in Malaysia.

3. Importance of Daily Rate Calculation

Details: Calculating the daily rate helps both employers and contractors understand the value of work on a per-day basis, facilitates part-time contract arrangements, and allows for accurate pro-rata payments.

4. Using the Calculator

Tips: Enter your monthly contract rate in MYR. The calculator will automatically divide by 26 to give your daily rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 26 days?
A: Malaysia typically considers 26 working days per month (6 days/week minus Sundays and public holidays).

Q2: Is this calculation standard across all industries?
A: While 26 days is common, some industries may use different calculations (e.g., 22 days for 5-day work weeks). Always check your contract terms.

Q3: How does this differ from monthly employees?
A: Monthly employees typically receive fixed salaries regardless of working days, while daily rates are multiplied by actual days worked.

Q4: Are EPF and SOCSO deducted from daily rates?
A: For contract workers, this depends on the employment arrangement. Standard employees have these deductions from their monthly salary.

Q5: Can I use this for part-time work calculations?
A: Yes, this daily rate can help determine fair compensation for part-time or project-based work.