Easy Way to Calculate Daily Wages

Calculating employee salaries can be complicated. It affects how much money employees receive and how companies can attract the best candidates and retain top talent. In essence, employee salaries are based on the type of work they do.

How to Calculate Basic Salary Basic salary is a critical component of employee wages. It is the foundational pay that corresponds to their job. There are some rules to consider:

1.   Basic salary should not be less than 75% of the total salary if there are fixed components in the salary.

2.   Salary deductions should not be made unless agreed upon in the employment contract.

For example, Budi in Jakarta receives only basic salary. If a company wants to pay according to the 2023 Minimum Wage (UMP) regulations, Budi will receive Rp4,901,798. Meanwhile, Dani in another company in Jakarta, with both basic salary and allowances, will also receive the same as UMP DKI Jakarta 2023, which is Rp3,676,348.

Determining Employee Salaries Determining employee salaries involves considering several factors:

1.   Market wage trends.

2.   Company regulations regarding salaries.

3.   Employee contributions to the company's business.

Legal Basis for Daily Workers Daily workers need to calculate their daily wages in accordance with Regulation No. 36 of 2021 on Wage Regulations. There are two ways to calculate daily wages:

1.   For jobs with a 6-day workweek, divide the monthly salary by 25.

2.   For jobs with a 5-day workweek, divide the monthly salary by 21.

Daily wages should not be lower than the minimum wage.

Use Payroll Software Calculating employee wages can be made easier and more accurate by using payroll software. This helps avoid human errors. One option is to use payroll software from RC Electronic. CLICK HERE to consult for FREE!