What is a Day Factor?
Day Factor is a required field when setting up a Payroll Group.
The Day Factor is the number of working days in the year for your payroll group and is used when calculating an employee's hourly rate from their basic salary. An employee's hourly rate is used when the employee works overtime, or when one's salary is deducted due to unpaid absences or tardiness.
365 days in a year is also used in calculating the equivalent annual and monthly salary of monthly-paid employees. See below how the Estimated Equivalent Monthly Rate (EEMR) is computed:
Applicable Daily Rate (ADR) x 365 | = EEMR |
12 months |
Where 365 days/year = | 298 | Ordinary Working Days |
52 | Rest Days | |
12 | Regular Holidays | |
3 | Special Holidays | |
365 | Total Equivalent Number of Days per Year |
Here are other examples of Day Factor or Number of Working Days as prescribed by the Department of Labor and Employment
261 days | Employees who are not required to work or not considered paid on Saturdays and Sundays or Rest Days |
313 days | Employees who are not required to work or not considered paid on Sundays or Rest Days |
393 days | Employees who are required to work daily including Sundays, Rest Days, Special Holidays and Regular Holidays |
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