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 arrangements
Contractual hours of work
5 days or less a week
Up to 9 hours per day or 44 hours a week
More than 5 days a week
Up 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 Month
Calendar Days
Number of Sundays
Number of Saturdays
5-day work week
5.5-day work week
6-day work week
January
31
4
4
23
25
27
February
29
4
4
21
23
25
March
31
5
5
21
23.5
26
April
30
4
4
22
24
26
May
31
4
4
23
25
27
June
30
5
5
20
22.5
25
July
31
4
4
23
25
27
August
31
4
5
22
24.5
27
September
30
5
4
21
23
25
October
31
4
4
23
25
27
November
30
4
5
21
23.5
26
December
31
5
4
22
24
26
Total
366
52
52
262
288
314
Notes:
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.
Half day work is on a Saturday, and Sunday is the default rest day.
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
How to calculate salary per day if my employee works on a public holiday?
If the public holiday falls on
Your employee is entitled to
A working day
An 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 day
Payment 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
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!
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