About monthly and daily rates

A monthly rate is a fixed amount a worker is paid each month, regardless of the number of days they work. Monthly rates are common in places where long-term engagements are more typical, including countries such as India, China, Brazil, Russia, UAE & Saudi Arabia, and Japan. Some companies may adjust the payment based on attendance or agreement with the supplier – this practice is also known as pro-rating. Overtime is not typically used, although some organizations may allow for it.

A daily rate is a set amount a worker is paid for each day that they work. Daily rates are popular in countries with more flexible or project-based work such as UK, Ireland, Australia, New Zealand, Netherlands, Germany, and South Africa, providing greater flexibility for contractors, freelancers, and temporary workers. Overtime is generally not common, although some organizations may allow for it.

To help align with local market practices across different countries, Beeline Professional breaks down all rates to hourly rates.

Monthly rates in Professional

While Professional doesn’t yet support entering units like 0.25 day or 0.5 month on timesheets (this is on our roadmap!), here’s how monthly rates are managed:

  • Rate setup: The monthly rate is defined on the engagement.

  • Invoice frequency: Set to Monthly, which helps align timesheets to calendar months.

  • Number of work days: Are determined based on the work schedule and holiday schedule that you set up.

  • Rate breakdown:

    Monthly rate / working days = daily rate (for example $40/day)

    Daily rate / hours per day = hourly rate (for example $40 / 8hrs) = $5/hr

  • Time entry: Workers enter their worked hours (not days or months).

    For example, if a worker enters 40hrs, they’re paid the full monthly rate ($1000).

    If a worker enters 39hrs, their pay is adjusted accordingly ($1000 – 1hr = $995).

  • Reporting: The total is included in timesheet export reports and financial data extracts.

Daily rates in Professional

Here’s how daily rates are managed:

  • Rate setup: The daily rate is defined on the engagement.

  • Invoice frequency: Not required for daily rates.

  • Rate breakdown:

    Daily rate / working hours per day = hourly rate

    For example, $500 / 8 hrs = $62.50/hr.

  • Time entry: Workers enter their worked hours. Optional overtime rules can be added to allow for overtime payments or not.

  • Reporting: The total is included in timesheet export reports and financial data extracts.