How to Calculate Salary Per Day in Malaysia

Not every company pays employees monthly. Some pay by the day or even by the hour. If your company is thinking about switching to daily pay, this article will show you how to calculate salary per day in Malaysia. Read on to find out more.

How to Calculate Salary Per Day

Daily salary calculation refers to the method used to determine how much an employee earns each working day. It’s especially useful when someone doesn’t work the full month, maybe because they just joined, resigned, or took unpaid leave. The calculation helps payroll stay accurate, consistent, and fair.

When to Use It in Malaysia

There are a few common situations when HR teams need to calculate daily salary:

New hires starting mid-month: Someone joins after the cut-off date of the payroll month, then their salary needs to be prorated based on their start date.
Final salary for resigning employees: An employee leaves before the end of the month, and their last salary should match their actual working days.
Deduction for unpaid or emergency leave: If someone takes leave without pay, the amount deducted should be based on the daily rate.
Overtime or part-time wages: Some teams use daily or hourly rates to calculate overtime or part-time pay fairly.

Standard Formula (For Monthly-Paid Employees)

As recommended under the Employment Act 1955, the recommended formula is:

Daily Rate = Monthly Salary ÷ 26

The 26-day divisor is based on the average number of working days in a month, not including rest days or public holidays.

Example:

If an employee earns RM2,600 per month:
Daily rate = RM2,600 ÷ 26 = RM100

This rate is then used to calculate pay for partial months, unpaid leave, or other adjustments.

Alternative for Hourly or Contract Roles

For part-time staff or contract roles,a daily salary may not be enough. In those cases:

Hourly Rate = Daily Rate ÷ Number of Hours per Workday

Example:

RM100 daily rate ÷ 8 hours = RM12.50 per hour

For part-timers, prorate based on the total number of hours they are expected to work based on their contract.

Why It’s Important for Employers and HR

Getting the daily salary calculation right helps in many ways.

Getting the amount right means paying staff fairly without paying too much or too little, especially when it comes to calculating partial workdays, unpaid leave, or someone's final month of work. Your company can maintain accurate records and avoid salary disputes.

When daily salary is calculated clearly, employees can understand how their pay is broken down, especially when deductions are made. Transparency builds trust.

It also helps make sure final payslips are accurate, especially when someone resigns or takes unpaid leave. And most importantly, getting the math right from the start avoids costly payroll mistakes that could lead to compliance issues or unhappy staff.

Tips for Employers

Calculating daily salary requires more concentration, and details matter especially when it involves resignations, new joiners, or leave deductions.

So, you need to be extra careful to get it right and stay aligned with employment contracts and internal policy.

Follow these tips below for making the process smoother:

Always check your company’s HR policies or employment contracts. Some may have different terms.
Be consistent when rounding off amounts, such as using two decimal places.
Use HR or payroll software to reduce manual errors and speed up calculations.
During onboarding, inform employees of their daily or hourly rate so they understand how their pay is calculated.

FAQs

What if an employee works fewer than 26 days? Should we still divide by 26?

Yes. The 26-day rule is a standard recommended under the Employment Act for monthly-paid employees. It remains the divisor even if the employee works fewer days.

How should daily salary be calculated for part-time or hourly employees?

For part-time workers, calculate the hourly rate and multiply it by the number of hours worked, based on their contract.

Can employers use different formulas (e.g. based on calendar days) for internal policy purposes?

Some companies may use 30 days or actual working days in a month as a divisor, but this must be clearly stated in the employment contract or HR policy to avoid confusion.

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