saravsist Started The Discussion:
I have to prepare the salary statement, can anyone help me how to calculate in excel and i need formula for basic by which keying gross salary and no of days present,,,
Please help me out,, its very urgent,,,
I have doubt. Till now in my experience we are considering 30 / 31 / 28 days as the basis for salary computation. Where as the actual wage should be 26 days only. even we calculate gratuity for 26 base only.
then my doubt is that while calculating..the lop and net salary which method should be followed and any rule / act to refer as under:
1. Earned Salary = Actual Gross / No. of total days in a month * Actual working days.
2. Earned Salary = Actual Gross / 26 * Actual Working Days.
which is the correct Method ? I have been asked by the management that when we are paying for 26 days (gratuity), why cannot we calculate for 26 days for payroll also instead of 30 / 31 days ...?
Herewith I am attaching a Salary sheet .
Salary Sheet Format.xls
Hope this information would help you.
I do not think there is any rule as to the dividing factor i.e. 31/30 or 26. It depends from organization to organization. Organizations either take 30 or 31 as they give advantage to the employees for LOP deductions. Presently, organizations like to be lenient because of intense competition. On the contrary most of the employees do not what dividing factor is considered while calculating LOP. But 26 days can be considered. For eg. If salary is 30,000, an organization stands to gain Rs.186 for one day's LOP, so if there are average 100 LOPS in an organization in one month, organization saves 18600 each month.
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