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Basic Rate of Pay vs. Gross Rate of Pay
Basic Rate of Pay vs. Gross Rate of Pay

Ordinary Rate of Pay. Daily Rate. Hourly Rate.

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Written by Nicholas
Updated over a week ago

Daily wages are calculated at a basic rate or gross rate of pay.

Basic rate is used in calculating work on rest days or public holidays, excluding any additional payments e.g. allowances, bonus, reimbursements, incentives.

Gross rate is used in calculating paid public holidays, paid leave (e.g. annual leave, hospitalisation leave), salary in lieu of notice of termination and salary deductions for absence from work. This includes allowances (except for travel, food & housing allowances) but excludes other additional payments.

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Daily rate of pay for a monthly-rated:

  • (12 x monthly rate of pay) / (52 x average no. of days worked in a week)

Hourly rate of pay for a monthly-rated:

  • Daily rate of pay / working hours per day


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Useful definitions:

  • Half-day is up to 5 hours of work in a day.

  • Total work days in a month includes public holidays

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