Days Pay

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A Days Pay.

How to calculate a days pay.


There are no hard & fast rules for calculating a days pay say for an employee who starts mid way through a pay period.

For a weekly paid employee you could merely divide the normal weeks pay by the number of days worked.

Thus an employee on £450.00 for a 5 day week would have a days pay of 450/5 = £90.00.

If the employee receives a salary then you could divide the salary by 260 (5 days * 52 weeks) to give the days rate.Thus £25000 yearly salary gives 25000/260 = £96.16. Please note that in a particular year there can be different working days.
Some employers pay a basic salary and deduct the number of days missed as a deduction. You may need to write this into the workers contract of employment to ensure it is not an illegal deduction.


There has recently(may17) been a Supreme Court case regarding the deduction for the time the employee was on strike. This resulted in the days pay being calculated as 1/365 of their salary.
"The Supreme Court considered the evidence from the teachers that demonstrated that their work was not limited to time teaching and they regularly performed their duties during evening, weekends and/or days of annual leave. Accordingly it was appropriate to have a deduction of 1/365."
http://www.learnpayroll.co.uk/index.php/news/news/item/calculating-strike-pay
https://www.supremecourt.uk/cases/docs/uksc-2015-0142-press-summary.pdf

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