Are you looking for how to calculate salary per day? Calculating salary per day indeed can be a crucial task for HR professionals, especially when it comes to calculating the salaries of employees who have joined or resigned mid-month or part-timers.
In this article, we will discuss how to calculate salary per day and in an incomplete month, as well as the relevant Malaysian labour laws that regulate the salary. Let’s find out below!
Salary and Wages in Malaysian Labour Law
In Malaysia, the Employment Act 1955 governs the minimum terms and conditions of employment for employees who are engaged under a contract of service. Under the Act, an employee is entitled to a minimum wage of RM1,200 per month in Peninsular Malaysia and RM1,100 per month in Sabah, Sarawak, and Labuan.
In addition, employees who work on a daily, hourly, or piece-rate basis must be paid at least the minimum wage rate applicable to their respective states. Failure to comply with the minimum wage requirements can result in legal action against the employer.
How to Calculate Salary per Day
Calculating salary per day can be useful in various situations, such as determining prorated salaries for employees who join or resign mid-month or calculating the salary for a temporary employee who is paid on a daily basis.
The formula for calculating salary per day is:
(Salary ÷ Number of working days in a month)
For example, if an employee’s monthly salary is RM3,500, and the company operates for 22 days in a month, the salary per day would be calculated as follows:
(3,500 ÷ 22) = RM159.09 per day
It’s important to note that the number of working days in a month can vary depending on the company’s policies and practices. Some companies may consider weekends as working days, while others may only count weekdays. Therefore, it’s crucial to clarify the number of working days in a month before calculating the salary per day.
It’s also worth noting that if an employee takes unpaid leave or is absent from work for any other reason, their salary per day would be prorated accordingly. For instance, if an employee takes two days of unpaid leave in a month, the number of working days in the month would be reduced to 20, and the salary per day would be recalculated as follows:
(3,500 ÷ 20) = RM175 per day
Read more: Read more: Graveyard Shift: Meaning, Advantages, and Disadvantages
How to Calculate Salary in an Incomplete Month
Calculating the salary for an incomplete month can be tricky, especially if an employee joins or resigns mid-month. In such cases, the salary should be prorated based on the number of days the employee has worked.
The formula for calculating an incomplete month’s salary is as follows:
(Salary ÷ Number of days in the month) x Number of days worked
For example, if an employee joins on the 15th of the month, and their monthly salary is RM4,000, the incomplete month’s salary would be calculated as follows:
(4,000 ÷ 31) x 17 = RM2,193.55
It’s important to note that the number of days in the month can vary, depending on whether it’s a 28, 29, 30, or 31-day month. Therefore, it’s crucial to clarify the number of days in the month before calculating the incomplete month’s salary.
Similarly, if an employee resigns before the end of the month, their salary should be prorated based on the number of days they have worked. For example, if an employee resigns on the 20th of the month and their monthly salary is RM4,500, the incomplete month’s salary would be calculated as follows:
(4,500 ÷ 31) x 20 = RM2,160.97
It’s important to note that the formula for calculating an incomplete month’s salary can also be used to calculate the salary for employees who take unpaid leave for a specific number of days in a month. For instance, if an employee takes three days of unpaid leave in a 30-day month, their salary for the month would be prorated based on the remaining 27 days.
It’s also worth noting that employees who work on a daily basis should be paid based on the number of days they have worked in the month, regardless of whether it’s a complete or incomplete month. In such cases, the salary per day formula discussed earlier can be used to calculate their salary.
Read more: A Comprehensive Guide on Shift Work Schedule Management in the F&B Industry
Calculating salary per day and incomplete month salary can be a daunting task for HR professionals, especially if they are dealing with complex scenarios such as mid-month joiners or resignations. However, by understanding the relevant labour laws and using the right formulas, HR professionals can ensure that they calculate salaries accurately and in compliance with the law. Moreover, it’s essential to clarify the company’s policies and practices regarding the number of working days and days in the month to avoid any confusion or disputes.
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