How Daily Rates are Calculated: Computation Methods

1. What are the five computation methods?

The current Workpay method. Your monthly salary is divided by 30.33 to get the daily rate. All months are treated as equal regardless of actual calendar days. Retained for clients who prefer it.
​

Your annual salary is divided by your annual working hours, calculated from the number of working days per week and hours per day. Accurate for employees on a defined daily schedule.
​

Your annual salary is divided by annual working hours, calculated from total hours worked per week. Suits employees defined by weekly hours.
​

Your annual salary is divided by annual working hours, calculated from total hours worked per month. Suits employees defined by monthly hours.
​

Your monthly salary is divided by a fixed number of working days you define — for example, 26 days — applied consistently every month. Suits factory workers and shift workers, where every month is treated the same.

2. Which computation method is right for my business?

It depends on how your employees' working time is defined.

If all employees are on standard office hours and you are happy with your current payroll, stay on calendar days.

If you have factory workers or shift workers, fixed days in a month or daily working hours will be more accurate.

If your employees are paid based on total weekly or monthly hours rather than a daily schedule, weekly or monthly working hours will suit them better.
​

Your account manager can help you identify the right method for each group of employees.

3. Will different computation methods produce different payroll amounts?

Yes, in most cases. The different methods reflect actual working time more accurately than 30.33. For employees whose actual working arrangement matches the new method, the amounts will be more precise.
​

Your account manager will walk you through the expected impact before you transition, so there are no surprises.

4. What does 30.33 actually mean?

It is an average. There are 52 weeks and 7 days in a year — 364 days total. Divided by 12 months, that gives approximately 30.33 days per month. Workpay uses this fixed number so that the daily rate stays consistent regardless of whether a month has 28, 30, or 31 days.

It is a practical average used for consistency, not the actual number of working days in any given month.

5. I currently use a fixed number of payable days per month, like 26. Which method covers this?

Fixed days in a month. You configure the number of days — for example, 26 — and how many hours an employee works per day. The system treats every month as having that many working days, regardless of the calendar.

6. Can I use different computation methods for different employees in the same company?

Yes. That is exactly what pay policies are designed for. You can create one policy for your admin staff using calendar days and another for your factory workers using fixed days in a month. Each employee is assigned to the policy that matches how they work.

7. Are all computation methods available for weekly and bi-weekly paid employees?

Yes. All five methods are compatible with all payment frequencies — monthly, bi-weekly, and weekly. The computation method determines how the daily and hourly rates are derived. The payment frequency is configured separately for the employment type.