Monthly Paid vs Daily Paid - I'm Confused!
Believe it or not, one of the most confusing part of payroll processing is determining the difference between monthly paid and daily paid employees. If it is your first time to process payroll, then the following might be useful to you. What does "Monthly Paid" Mean? First thing's first. Monthly paid is different from Monthly Rate. An employee can have a monthly rate of Php 15,000.00 but still be considered as daily paid. In the same manner, a person with a daily rate of Php 537.00 can be a monthly-paid employee. According to the 2018 Edition of the Handbook on Workers' Statutory Monetary Benefits, Monthly-paid employees are those that use "365" as the factor for determining the daily rate or the monthly rate. This means that the person is paid for every single day of the year, including rest days and special non-working holidays regardless whether the latter two are worked or un-worked. Let's say a monthly-paid employee is earning Php 25,000....