How the daily rate is computed
The DOLE formula in four steps, kasambahay rules included.
Multiply the monthly salary by 12. Working from a daily rate instead, this step runs in reverse at the end.
× 12The factor is the number of paid days in a year: 261 for a five-day week, 313 for six days, 365 when rest days are paid.
÷ 261 · 313 · 365Divide the daily rate by 8 for the hourly equivalent. Overtime and premiums build on this figure.
÷ 8For a kasambahay: SSS, PhilHealth, and Pag-IBIG on top of the wage, 13th month pay, and five leave days after a year.
RA 10361The factor and kasambahay rules
fair and clearDividing a monthly salary by any one month's working days gives a rate that drifts with the calendar, since months differ in length. The DOLE method annualizes the salary first, multiplying by 12, then divides by the paid days in a full year. That factor is 261 for a five-day week, which is 365 minus 104 rest days, 313 for a six-day week, and 365 when rest days are paid. Because that factor is fixed, the rate stays the same all year.
A ₱20,000 monthly salary on a five-day week works out to 20,000 times 12 divided by 261, about ₱919.54 per day. Divide that by 8 for the hourly equivalent, roughly ₱114.94, which is the base that overtime and premiums build on. Payroll offices use this same rate for absences, leave conversions, and loan computations, so it is the figure that shows up on your payslip.
For a kasambahay, RA 10361 adds more than the wage. Metro Manila's floor has been ₱6,000 a month, with SSS, PhilHealth, and Pag-IBIG coverage, 13th month pay, a weekly rest day, five paid leave days after a year, and free board and lodging. Below ₱5,000 the employer pays the whole premium; at ₱5,000 and above the usual employee share applies. To see what lands in hand, the take-home pay calculator and income tax calculator carry it further.
Questions people ask
answered in plain wordsMultiply the monthly salary by 12 to get the annual pay, then divide by the factor for your workweek: 261 paid days for a five-day week, 313 for a six-day week, and 365 when rest days are paid. A ₱20,000 monthly salary on a five-day week is 20,000 times 12 divided by 261, about ₱919.54 per day.
Months have different lengths, so dividing by any single month's days gives a rate that changes with the calendar. The DOLE formula annualizes the salary first and divides by the paid days in a whole year, which produces one consistent rate. It is the method payroll offices use for absences, leave conversions, and loan computations.
Count the days you are paid for in a year. A five-day office week is 261, which is 365 minus 104 rest days. A six-day week is 313. Use 365 if you are paid daily including rest days and holidays. Some companies use house variants such as 262 or 313.5 depending on how they treat holidays, so your payslip may differ slightly.
Each region's wage board sets its own kasambahay minimum under RA 10361, the Batas Kasambahay. In Metro Manila it has been ₱6,000 per month, with other regions setting lower floors. The current wage orders are on the DOLE National Wages and Productivity Commission site; check the one for your region before agreeing on pay.
Beyond the wage: SSS, PhilHealth, and Pag-IBIG coverage; 13th month pay; a weekly rest day of 24 straight hours; five days of paid service incentive leave after one year; and board, lodging, and medical attendance at no charge. The employer registers the kasambahay and remits the contributions.
When the monthly wage is below ₱5,000, the law puts the entire premium on the employer and nothing may be deducted from the kasambahay. At ₱5,000 and above, the kasambahay pays the regular employee share and the employer pays the employer share, the same split as any private employee.
No. RA 10361 requires the employer to provide food and humane sleeping arrangements free of charge, and forbids deducting their value from the cash wage. Deductions are allowed only for the employee's own share of contributions at ₱5,000 and above, or with the kasambahay's written consent for specific obligations.
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