log inTry payboy for Free
Switch to Payboy now for only $3 
SAY GOODBYE TO EXPENSIVE HRMS
Switch to Payboy now for only $3 Say goodbye to expensive HRMS
Find out now
Unlock exclusive funding for Payboy with 50% on PSG and up to 80% on NCSS!

Calculate salary per day guide for employers in Singapore

Welcome to our essential guide tailored for employers on calculating daily wages in Singapore. Ensuring accurate and fair compensation practices is paramount to maintaining a motivated workforce. In this guide, we'll delve into the specifics of calculating salary per day, equipping you with the knowledge and tools to navigate remuneration effectively. Whether you're fine-tuning payroll procedures or seeking clarity on legal requirements, this guide is your indispensable resource!

What is a salary?

At its essence, a salary represents a fixed, regular payment extended by an employer to an employee. This stable form of compensation, often expressed on a monthly basis, provides employees with financial predictability and stability. For instance, if an employee is offered a monthly salary of S$3,000, they can expect to receive this fixed monthly amount consistently.

What makes a salary different from a wage?

While the terms "salary" and "wage" are often used interchangeably, they carry distinct meanings in employment contexts. Wages are typically tied to hourly rates and are subject to variations based on the number of hours worked. Conversely, a salary offers a predetermined, fixed amount regardless of the actual hours an employee puts in.

What is considered a standard work arrangement in Singapore?

In Singapore, employees covered under the Employment Act Part IV, contractual working hours cannot exceed 8 hours per day or 44 hours per week. According to the MOM (Ministy of Manpower), under the "Normal hours of work" section, the common work arrangements are as follows:

Common work arrangementsContractual hours of work
5 days or less a weekUp to 9 hours per day or 44 hours a week
More than 5 days a weekUp to 8 hours a day or 44 hours a week

Are weekends included in the calculation of working days?

Different companies have varying policies regarding weekends as working days; some include weekends, while others only count weekdays. Hence, it's essential to establish the exact number of working days in a month before proceeding with the salary per day calculation. 

Here’s a useful table that you can use to quickly determine the monthly total number of working days in 2024, depending on your company’s working schedule.

    Total number of working days in the month
Calendar MonthCalendar DaysNumber of SundaysNumber of Saturdays5-day work week5.5-day work week6-day work week
January3144232527
February2944212325
March31552123.526
April3044222426
May3144232527
June30552022.525
July3144232527
August31452224.527
September3054212325
October3144232527
November30452123.526
December3154222426
Total3665252262288314

Notes:

  1. The number of working days in the month includes the public holidays that fall on a normal working day but excludes rest days and non-working days.
  2. Half day work is on a Saturday, and Sunday is the default rest day.
  3. The 6th working day is on a Saturday, and Sunday is the default rest day.

How to calculate the salary per day?

For a monthly-rated employee, the gross rate of pay for 1 day is calculated as follows:

Salary Per Day = 12 x monthly gross rate of pay / 52 × average number of days an employee is required to work in a week

Tip: Unlock more insights into understanding gross salary and its implications for employers in Singapore, check out our comprehensive "Gross salary guide for employers in Singapore"!

How to calculate salary per day if my employee works on a public holiday?

If the public holiday falls onYour employee is entitled to
A working dayAn extra day’s salary at the basic rate of payThe gross rate of pay for that holidayOvertime pay is paid if the employee works beyond his or her normal working hours
A non-working day (e.g., Saturday for employees on a 5-day work week)Overtime pay for extra hours worked on a SaturdayOne extra day’s salary at the gross rate of pay or another day off for the public holiday
A rest dayPayment for work done on a rest dayOvertime pay is paid if the employee works beyond his or her normal working hoursThe next working day will be a paid holiday instead

Tip: Head over to our comprehensive “Public holiday pay guide for employers in Singapore” to find out everything you need to know about public holiday pay!

How to calculate the prorated salary in an incomplete month?

In months where an employee's tenure is incomplete, calculating the salary per day involves specific considerations. The calculation would be:

Salary Per Day = (Monthly Salary / Number of Working Days in the Month) * (Actual Working Days)

Example:

Brandon joins a company on the 15th of a particular month, and his monthly salary is S$3,000. For simplicity, let's assume a standard month with 22 working days.

Monthly Salary = S$3,000

Number of Working Days in the Month = 22

Actual Working Days (from the 15th to the end of the month) = 7

Salary Per Day ≈ ( S$3,000 / 22) * 7 ≈ ($136.36) * 7 ≈ $954.55

In this scenario, Brandon’s salary per day for the incomplete month would be approximately S$954.55. This calculation takes into account the actual working days in the month, providing a prorated amount based on the partial period of employment.

Tip: Incomplete salaries can occur often when you are onboarding new hires mid-month, or managing no-pay leave. Head over to our "Incomplete monthly salary guide for employers in Singapore" to equip you with the necessary knowledge to calculate an incomplete month’s salary with ease, ensuring accurate remuneration for your employees.

Are variable components like bonuses included in the calculation of salary per day?

According to the MOM guidelines, variable components such as overtime payments, bonus payments, and annual wage supplements (AWS) are excluded from the calculation of the daily salary. Similarly, reimbursement of special expenses incurred during employment, productivity incentive payments, and travel, food, and housing allowances are not factored in.

Do salary per day calculations differ for contractors or freelancers?

Yes, salary per day calculations for contractors or freelancers may differ. These individuals often negotiate their rates based on project scope, duration, and market rates for their expertise, making their salary structures distinct from those of regular employees.

Tip: Dive deeper into the secrets to building a flexible and dynamic workforce that's tailored to your business needs with our guides on hiring contract employees and hiring freelancers in Singapore!

Simplify salary calculations with Payboy HR software!

Salary calculations can be complex, especially if you are managing a large team of employees with different working arrangements. But fret not; Payboy HR software is here to help!

With our fully compliant, customisable, and integrated payroll processing module, you can automate the CPF calculations and also enjoy additional features that are designed to save you time and effort.

  1. 100% compliance and 100% peace of mind
  2. Covers any work arrangement
  3. Transparent, Accurate, and Simple
    • Have full visibility on how payroll is calculated automatically based on shifts, attendance, leave, and submitted claims within an intuitive experience.
  4. Customisable itemised payslips
  5. Fully integrated with your preferred platforms
    • We’ll fit into your ecosystem seamlessly and keep your finance team happy. Learn more about our seamless integrations with Xero, Financio, and Quickbooks.

Streamline your HR processes with Payboy today!

As a PSG-approved HRMS, Payboy provides a robust system to help you manage your HR tasks so that you can focus on your business and people!

With our wide range of modules, you can customise a solution to meet the specific needs of your business:

Payroll Processing | Leave Management | Claims Management | Time Attendance | Shift Scheduling

Find out how you can do it all with Payboy

Reach out to us if you are keen for a free demo on how we can help you save hours and give you some peace of mind on payroll and other HR matters so that you can focus on your business and people.
Schedule Demo
here are some other news you might like:
crossmenuarrow-right