Salary earned on a daily basis?

A question about : Salary earned on a daily basis?

Good Evening All,

Hopefully someone can help, just reviewing an offer letter which states the following, 'Salary will be Јxx,xxx per annum, it will be earned on a daily basis, and paid monthly in arrears.

The bold bit that I have highlighted is what we are unsure about, I am unfamiliar with the phrase and a google search hasn't answered my question.

My worst fear is that it is saying the salary is what would be earned if you worked every day, so what you will actually get is pro rata depending on days worked e.g. 5/7.

I will of course ask the question directly if I don't manage to work it out myself.

Someone please put my mind at rest! Thanks

Best answers:

• Probably means you will be paid an uneven amount each month depending on how many days you have worked. Eg month 1 you may work 20 days so get 20 days pay and month 2 you work 21 days and earn 21 days pay, most people on salaries get their salary divided by 12 so get the same each month.
• Thanks specialboy,
  So it could actually end up only being 5/7ths of the actual salary quoted..will need to clarify this with them.
• Payroll can be calculated in different ways.
  A common way to calculate it is divide the annual salary by 12 and pay that each month. That does not work for beginning or leaving in the middle of the month though. One way to deal with that is divide the monthly salary by the number of days in the month and pay you for the number of days you are employed - not the days you work.
  So salary Ј12,000 per year gives Ј1000 per month. Divide that by 28 for February and you will be paid Ј35.71 per day.
  Start work on the 23rd of February and you would be paid for 6 days or Ј214.26 in February, followed by Ј1000 a month.
  I would expect that to be what it means.
• It could be what specialboy says, but it could also be that you'll be paid based on the number of days in the month, so for February you'd get 28/365ths of your annual salary, while for March it'll be 31/365ths.
  The simple answer is to ask your employer - trying to work it out for yourself might work once you have some payslips, but I'm sure your payroll department will explain it to you long before that.
• On the plus side, you will get an extra day's pay for February in a leap year.
• as well as what they mean by the daily basis
  I would clarify(for the purpose of budgeting and planning if they ask WHY)
  Pay period - the dates that make up a pay period could be calendar or some other dates like 15th-14th(inc).
  Pay day - this could be last day,last weekday, specific date or other.
  -----
  typicaly monthly in arrears means pay day at the end or not long after the monthly pay period,
  In some cases this means getting paid a bit early. eg calendar month pay period last friday of the month pay day.
• Thanks everybody, all very helpful replies, this forum is amazing, even Google couldn't help me with this.
  I am also now thinking (hoping) what it means is actually pay will be based on number of days in the month,not worked per month, as if the Ј18,000 salary was based on 5/7ths it would equate to a simply unrealistic wage for the the job.
  Will of course get everything clarified.