Calculating daily salary sounds simple… until you’re faced with real-life cases like a mid-month resignation, unpaid leave, or a part-timer working three days a week. And if you’re in HR or payroll, one wrong formula can mean non-compliance with MOM guidelines and that’s a problem no one wants.
So, how exactly do you calculate daily salary correctly in Singapore? Whether you’re new to payroll or just need a quick refresher, here’s everything you need to know.
Why Daily Salary Calculation Matters?
Daily salary calculations aren’t just for part-timers or freelancers. They’re crucial when:
- An employee joins or resigns mid-month
- Someone takes unpaid leave
- You need to compensate for public holidays or rest day work
- You’re calculating encashments, short months, or pro-rated bonuses
Getting this wrong can trigger penalties from IRAS or MOM, or worse—lose your team’s trust.
The Official MOM Formula
To ensure compliance, the Ministry of Manpower (MOM) recommends these two formulas:
Basic Daily Pay
Used when calculating salary for work done on a rest day.
Formula:
(12 × Monthly Basic Salary) ÷ (52 × Average Number of Workdays Per Week)
Gross Daily Pay
Used when calculating paid leave, public holiday pay, salary in lieu of notice, etc.
Formula:
(12 × Monthly Gross Salary) ÷ (52 × Average Number of Workdays Per Week)
These formulas ensure employees are fairly compensated while keeping you in line with MOM guidelines.
For Part-Timers and Hourly Workers
Part-timers are common in F&B, retail, and services in Singapore. To pay them accurately:
Calculate hourly rate:
(Monthly Salary ÷ (52 weeks × Weekly Work Hours))
Then multiply by actual hours worked per day.
Make sure the employment contract clearly states expected hours to avoid confusion.
Prorating for New Joiners or Resignations
Say your employee joins on the 15th or leaves mid-month. You’ll need to prorate their salary based on actual working days.
Common formula:
(Monthly Salary ÷ Total Working Days in the Month) × Days Worked
This also applies when adjusting for no-pay leave.
Don’t Forget CPF and Other Contributions
One of the most common mistakes? Calculating the correct salary but forgetting to adjust CPF contributions, SDL, or SHG for partial months. These statutory contributions must match the actual wages earned—not the full monthly amount.
Common Mistakes in Daily Salary Calculation
Even experienced HR teams slip up. Here are the most common missteps:
- Using 30 days as a fixed divisor – MOM recommends using actual working days, not calendar days.
- Mixing up gross and basic salary – Public holiday pay is based on gross; rest day work is based on basic.
- Rounding errors – Always round CPF to the nearest dollar, but pay calculations to the nearest cent.
- Wrong workweek count – Don’t assume 5 days/week for everyone—check actual employment terms.
- CPF on fixed vs variable pay – Bonuses, allowances, and commissions may be CPF-applicable too.
Pro Tip: Don’t Calculate It Manually
Let’s face it—Excel formulas work, until they don’t. A missed update, one typo, or outdated rules can lead to expensive mistakes. That’s where automation comes in.
If you want a simpler, more accurate way to handle daily salary, CPF, bonuses, leaves, and even shift management—HRMLabs has you covered.
- Built for Singapore – 100% compliant with MOM, IRAS, and CPF rules
- Integrated System – HR, attendance, and payroll in one place
- Flexible Setup – Works for full-time, part-time, or shift-based employees
- Real Human Support – Speak to someone who understands Singapore payroll
- Automatic Updates – Stay compliant with new regulations, no manual effort needed
Final Thoughts
Daily salary calculation in Singapore may seem like a small detail but it impacts payroll accuracy, legal compliance, and employee satisfaction. By using the correct formulas, avoiding common pitfalls, and investing in a reliable system, you can ensure smooth payroll operations year-round.
Let HRMLabs take the stress out of daily salary calculations so you can focus on growing your business.
