Knowing your per-day salary can help you better understand your pay slip distribution as a salaried working professional. Whether you're taking unpaid leave or just curious about the value of your daily labour, calculating your per-day salary is easy and informative.
As the name indicates, the per-day salary is simply the total salary you earn daily. It may not be a sizeable amount, but calculating your per-day compensation could help you better gauge your pay slip distribution. You can compute the per-day salary via gross pay and net pay. It gives you a better idea of how much one day of your labour is worth in the market currently.
It depends on your type of employment. For daily wage earners, in particular, the per day income is significant since they do not have any fixed salary to rely on.
On the other hand, if you are a salaried employee, the per-day salary becomes essential when you take one or more unpaid leaves during the month. In such a scenario, your total monthly payment will get reduced by the amount due for the days you were on leave. Here is when it helps to know how much of a pay loss you will incur. And the per day salary can help you better understand this.
Calculating your per-day salary is extremely easy if you use this formula:
Salary per day = Annual (or monthly) salary ÷ Total base days in a year (or month)
Alternatively, if you use your monthly salary as the numerator, the entire base days during the month will be considered in the denominator.
Here is an example to help you understand this better. Your monthly salary is ₹50,000, and the total base days are 26. In that case, your per-day salary will be:
Salary per day:
= Monthly salary ÷ Total base days in a month
= ₹50,000 ÷ 26 days
Knowing the per-day salary can also help you compute how much you will earn during a month, in case you take a few days off. In that case, your monthly salary will be:
Monthly salary = Salary per day x Total paid days
The total paid days here is the total number of working or base days, adjusted for the days you were on leave. For instance, continuing with the above example, let’s say you took 3 unpaid leaves during the month. In that case, the total paid days for you during the month will only be 23 (26 days minus 3 days off). And your monthly salary will be:
= Salary per day x Total paid days
= ₹1,923 x 23 days
The base days used in the formula's denominator may vary from employer to employer. It can be decided using any of the following:
It determines the number of base days based on the calendar days during the month. For instance:
*In May, the number of base days will be 31.
*In June, it will be 30 days.
Here, the number of calendar days a month gets adjusted for the weekends. The weekends here could consist only of Sundays or Saturdays and Sundays, depending on the employer's policy.
*If September has 5 Sundays, the number of base days per this method will be 25 (i.e. 30 days minus 5 Sundays).
Some employers may also decide to use a fixed number of base days, irrespective of the month, for more uniformity in the calculation. This number is typically 26 days or 30 days.
Whether you're a daily wage earner or a salaried employee taking unpaid leave, knowing your per-day salary can help you better understand your compensation and plan your finances accordingly. By using the formula provided in this guide and different methods of adopting base days, you can easily calculate your per-day salary and gain a better understanding of your pay slip distribution.
To compute your salary per day, divide your annual salary by the total number of working days in the year. To determine the total number of days, some employers use all calendar days, some use calendar days adjusted for Sundays, and others have a fixed number of days per month.
To calculate your in-hand salary in India, follow these steps: