What is calendar day?
Calendar day means the period of elapsed time, using Coordinated Universal Time or local time that begins at midnight and ends 24 hours later at the next midnight. It refers to the number of days in the year, such as 365 or 366 days in a year. That is, calculate the salary based on the days in the calendar.
Why is calendar day important?
A company is free to decide whether the rest day is paid or unpaid, and there are no restrictions in “Labour Legislation”. If the rest day is paid to the employees, employers should calculate average daily wages based on the calendar day. For the salary of rest day is counted into the actual basic salary. So, calendar day for payroll is a standard, which is related to the actual basic salary, salary deductions, MPF contributions, etc.
Notice of calendar day
Not only related to salary, calendar day is also connected with other HR issues. For example, MPFA has noted that for new employees, employers must make their first-time contributions to trustees on or before the next contribution day (the 10th day of each month) after the calendar month in which the 60th day of employment falls. The day mentioned here refers to calendar day. And the unit quoted in formal ordinance usually means calendar day.
The benefits of calendar day
Compared with the working days calculation, calendar day is used by most companies, for the days are basically fixed each month and this kind of calculation method is less complicated. There is no need to deduct the rest days taken by employees. Thus, less manual import and action will be needed.
Workstem
Workstem is a cloud-based one-stop HR & Payroll platform, no matter the company uses the periodic calendar day, working day or average annual working days to do payroll, the system is able to accurately calculate, greatly reducing time and labour costs during the payroll process with increased efficiency.
Read more: How to Distinguish Between Periodic Calendar Day, Working Day or Average Annual Working Day?