venukari
When a new employee joins in the middle of the month, how do we calculate his salary for the first month?
We take 30 days per month formula to arriave at daily salary for loss of pays etc. If an employee joins on March 3rd. Should we consider 31st also and pay 29 days salary or should we consider upto 30th only and pay 28 days salary?

From India, Hyderabad
malikjs
167

dear in this case you should take 30/31 in to account not fixed 30and you are required to pay 29 days salary in this case. tks j s malik
From India, Delhi
tegautham
8

You should consider the actual number of days as per the calendar month for the first month's pay calculation. Please find attached a short note illustrating the problem in using a fixed number of days (such as 30 or 31 for pay calculation).
The same logic applies for the calculation of last month's pay when an employee leaves an organization in the middle of a month.
T E Gautham
Tandem Integrated Business Solutions

From India, Madras
Attached Files (Download Requires Membership)
File Type: doc The30dayproblem-FirstMonthPayCalculation.doc (74.5 KB, 418 views)
File Type: doc The30dayproblem-FinalSettlementCases.doc (68.5 KB, 176 views)

Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.