It actually depends.
If it’s Monthly
- The employee will get paid a fixed amount of pay which doesn’t look at the total # of working days the employee actually worked
If it’s Hourly
- The employee will get paid based on the actual days/hours they worked, you will not get a fixed amount of let’s say Php 17,000 as the employee’s Hourly/Daily Rate is based on the Total Working Days per year.
So let’s take an example for two months (February and March)
Monthly Rate = P17,000
Daily Rate = P781.6092
Daily Rate Computation:
(Daily Rate = (Monthly Rate X 12) / Total working days in a year)
(computed using the 261 total working days per year) – Learn more.
Since there are only 28 days during February total working days is only 20 days
- If you use Monthly the employee will still get a fixed amount of P17,000
- If you use Hourly the employee will get (Daily Rate x # of Working Days) = P15,632.184
For March there are 31 days and total working days of 22 days
If you use Monthly the employee will still get a fixed amount of 17,000
If you use Hourly the employee will get (Daily Rate x # of Working Days) = 17,195.4024
The fixed amount will not change unless the employee has tardiness or worked ND, Holiday and Overtime.
If it’s a fixed 17,000 per month, I suggest using “Monthly pay mode”
Learn more about Pay Modes on our support article here – What is a pay mode
If you have any questions, feel free to email us at email@example.com