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How To Calculate Salary Per Day?
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Last edited by
Anoop Menon
Anoop Menonon
September 21, 2023
Reviewed by
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Created on
January 11, 2023
Knowing your per day salary can help you better understand your pay slip distribution as a salaried working professional. Whether you're taking unpaid leave or just curious about the value of your daily labour, calculating your salary per day is easy and informative.
In this blog, we discuss the meaning of salary per day and the popular methods that are used in the market to calculate your salary per day.
What Is The Meaning Of Salary Per Day?
As the name indicates, salary per day is simply the total salary you earn daily. It may not be a sizeable amount, but calculating your per-day compensation could help you better gauge your pay slip distribution.
You can compute your salary paer day via gross pay and net pay. It gives you a better idea of how much one day of your labour is worth in the market currently.
Is It Important To Know Your Salary Per Day?
It depends on your type of employment. For daily wage earners, in particular, the per day salary is significant since they do not have any fixed salary to rely on.
On the other hand, if you are a salaried employee, the understanding of salary per day becomes essential when you take one or more unpaid leaves during the month (depending on the HR policies in your organization). In such a scenario, your total monthly payment will get reduced by the amount due for the days you were on leave. Here is when it helps to know how much of a pay loss you will incur.
How To Calculate Your Salary Per Day?
Calculating your salary per day is extremely easy if you use this formula:
Salary per day = Annual (or monthly) salary ÷ Total base days in a year (or month)
Alternatively, if you use your monthly salary as the numerator, the entire base days during the month will be considered in the denominator.
Here is an example to help you understand this better:
Your monthly salary is ₹50,000, and the total base days are 26. In that case, your salary per day will be:
Salary per day:
= Monthly salary ÷ Total base days in a month
= ₹50,000 ÷ 26 days
= ₹1,923
Knowing the per-day salary can also help you compute how much you will earn during a month, in case you take a few days off. In that case, your monthly salary will be:
Monthly salary= Salary per day x Total paid days
The total paid days here is the total number of working or base days, adjusted for the days you were on leave. For instance, continuing with the above example, let’s say you took 3 unpaid leaves during the month. In that case, the total paid days for you during the month will only be 23 (26 days minus 3 days off). And your monthly salary will be:
Monthly salary:
= Salary per day x Total paid days
= ₹1,923 x 23 days
= 44,229
Different Methods Of Adopting Base Days To Calculate 1-Day Salary
The base days used in the formula's denominator may vary from employer to employer. It can be decided using any of the following:
1. Calendar Days
It determines the number of base days based on the calendar days during the month. For instance:
- In May, the number of base days will be 31.
- In June, it will be 30 days.
2. Calendar Days: Adjusted For Weekends
- Here, the number of calendar days a month gets adjusted for the weekends. The weekends here could consist only of Sundays or Saturdays and Sundays, depending on the employer's policy.
- For example: If September has 5 Sundays, the number of base days per this method will be 25 (i.e. 30 days minus 5 Sundays).
3. Fixed Number Of Working Days
Some employers may also decide to use a fixed number of base days, irrespective of the month, for more uniformity in the calculation. This number is typically 26 days or 30 days.
Want to Calculate Other Components of Your Salary?
Your salary comprises of multiple components other than just your fixed of in-hand cash pay. Below are some easy-to-use calculators that you can use:
- PPF Calculator - Calculate Your Public Provident Fund Maturity Amount
- Free HRA Calculator : Calculate Your House Rent Allowance
- Free EPF Calculator - Calculate Your Employee Provident Fund Contribution
Conclusion
Whether you're a daily wage earner or a salaried employee taking unpaid leave, knowing your salary per day can help you better understand your compensation and plan your finances accordingly. By using the formula provided in this guide and different methods of adopting base days, you can easily calculate your salary per day and gain a better understanding of your pay slip distribution.
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Frequently Asked Questions
1. How to calculate your salary per day?
To compute your salary per day, divide your annual salary by the total number of working days in the year. To determine the total number of days, some employers use all calendar days, some use calendar days adjusted for Sundays, and others have a fixed number of days per month.
2. How do I calculate my in-hand salary in India?
To calculate your in-hand salary in India, follow these steps:
- Determine your gross salary.
- Calculate your basic pay and allowances.
- Determine the deductions, including taxes and provident fund.
- Subtract the deductions from your gross income to arrive at your in-hand salary.
