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How to Calculate a Daily Salary
Salaried workers are typically paid a fixed income each pay date. According to the U.S. Department of Labor, the employer must pay the salaried worker a full salary regardless of the number of days or hours worked. But some exceptions apply. The employer does not have to pay for weeks the employee does not work. In new hire or termination cases, or when an employee takes more benefit days than allowed, the employer may prorate or dock pay. One method of calculation, according to the DOL, is by the employee’s daily salary rate.
Determine the employee’s annual salary; for instance, $67,000 per year. Then, determine his pay frequency, such as weekly, biweekly or semimonthly.
Divide the annual salary by the number of pay periods in the year. For instance, $67,000 / 26 biweekly pay periods = $2,576.92, biweekly pay.
Divide the result from Step 2 by the number of days in the pay period. Calculation: 2,576.92 / 10 days = $257.69, daily salary.
Tip
You may prorate or deduct the salaried worker’s pay based on the hourly rate. In this case, divide the result from Step 3 by eight hours to arrive at the hourly rate.
Writer
Grace Ferguson has been writing professionally since 2009. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance. A research writer as well, she has been published in The Sage Encyclopedia and Mission Bell Media.