Daily Rate Converter — Monthly to Daily & Hourly Rate

How your daily and hourly rate are worked out

Wage orders, overtime pay, and holiday premiums are all computed against a daily rate, not your monthly salary directly. To get there, this calculator uses the standard formula for monthly-paid employees: daily rate = (monthly salary × 12) ÷ 261. The 261 figure is the DOLE-recommended divisor for employees on a five-day work week with unpaid rest days — it represents the actual number of compensable days in a year.

Once you have the daily rate, the hourly rate follows directly: divide the daily rate by 8, the standard number of working hours in a day under the Labor Code.

Quick Answers to Common Questions

Why 261 and not 365 or 313 days?▼

261 is the standard divisor for employees who work a five-day week and are not paid for their two rest days. Employers who require a six-day work week typically use 313 instead, and 365 is used when rest days are also paid. Check with your HR or payroll team if you're unsure which one applies to you — this tool defaults to the most common 261-day standard.

What is this daily rate used for?▼

Your daily rate is the base figure for computing overtime pay, holiday premiums, night differential, and prorated pay for partial periods. See our Overtime & Holiday Pay Calculator and Prorated Salary Calculator to put it to use.