How Prorated Salary is Computed under DOLE Rules
Under the DOLE Handbook on Workers' Statutory Monetary Benefits, employees who are monthly-paid must have their equivalent daily rate derived from their annualized monthly compensation based on their establishment's actual work schedule.
The Formulas
Equivalent Daily Rate (EDR) = (Monthly Basic Salary × 12 Months) ÷ Annual Working Days Factor
Equivalent Hourly Rate = EDR ÷ 8 Working Hours
Prorated Basic Pay = EDR × Actual Days WorkedCommon Working Days Factors in the Philippines
- 261 Days: Standard 5-day workweek (Monday to Friday), excluding Saturdays and Sundays.
- 313 Days: Standard 6-day workweek (Monday to Saturday), excluding Sundays.
- 365 Days: Continuously operating establishments where work is required every day (e.g. security, healthcare).
- 393.8 Days: Workplaces where rest days and special/regular holidays are considered paid.
Worked Example
An employee earns ₱26,100.00 per month under a 5-day workweek (factor 261) and begins employment mid-cutoff, rendering 5 actual working days:
- Daily Rate: (₱26,100.00 × 12) ÷ 261 = ₱313,200.00 ÷ 261 = ₱1,200.00 per day.
- Hourly Rate: ₱1,200.00 ÷ 8 = ₱150.00 per hour.
- Prorated Salary: ₱1,200.00 × 5 days = ₱6,000.00.
Disclaimer: This calculator is provided for estimation purposes only. Disbursed pay may be subject to mandatory statutory contributions (SSS, PhilHealth, Pag-IBIG) and withholding taxes.