ADW Formula:
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The Average Daily Wage (ADW) is calculated by dividing total wages earned by the number of work days. This calculation is commonly used in Alberta for various employment and compensation purposes.
The calculator uses the ADW formula:
Where:
Explanation: This simple division provides the average amount earned per work day, which is useful for employment records, compensation calculations, and financial planning.
Details: Calculating Average Daily Wage is important for employment records, determining compensation rates, assessing work patterns, and meeting Alberta employment standards requirements.
Tips: Enter total wages in CAD and number of work days. Both values must be positive numbers (wages > 0, work days ≥ 1).
Q1: What counts as "total wages" in Alberta?
A: Total wages include regular pay, overtime, bonuses, commissions, and other compensation before deductions, as defined by Alberta employment standards.
Q2: How are work days defined?
A: Work days typically refer to days when the employee actually worked, excluding weekends, holidays, and leave days unless work was performed.
Q3: Why is ADW important in Alberta?
A: ADW is used for calculating various employment benefits, termination pay, and ensuring compliance with Alberta's employment standards legislation.
Q4: Can ADW be used for part-time workers?
A: Yes, ADW calculation applies to both full-time and part-time workers, providing a standardized way to compare daily earnings.
Q5: Are there special considerations for irregular work schedules?
A: For irregular schedules, it's important to accurately count only actual work days and include all forms of compensation in total wages.