Hi Friends, I would like to know if Basic Pay can vary every month depending on the number of days worked. Is there any statutory requriement that Basic should be constant Regards, Deepak S
From India, Madras
From India, Madras
Dear Deepak,
yes, it will depend upon no. of days u work in the month accordingly it will be calculated.
let us say my basic Rs5000p.m. i work four days inn the month, so is that mean i'll get Rs5000/- as basic.
Regards
Vipin:icon1:
From India, New Delhi
32yes, it will depend upon no. of days u work in the month accordingly it will be calculated.
let us say my basic Rs5000p.m. i work four days inn the month, so is that mean i'll get Rs5000/- as basic.
Regards
Vipin:icon1:
From India, New Delhi
Yes Basic Pay can vary every month depending on the number of days worked. But you can not reduce basic salary for full month worked.
From India, Pune
From India, Pune
suppose ur standrad basic is 10000/-for 30 Days then your salary calculation will be done on ur standard basic only but it can be vary in everymonth depend on ur working days....suppose u r absent for tw days and u dont hv any leave balance so u will be applicable for LWP for those two days and ..and ur salary wil be deducted like ths ..... 10000 -( 10000/30*2)
then we can say our basic can v vary .....
From India, Pune
then we can say our basic can v vary .....
From India, Pune
Hi All,
Its a good question, I think Mr. Deepak want to know.
Number of days vary in every month means, Feb has 28 or 29 days, March & other has 31 days & some months has 30 days. So in such case employee will get the varied basic salary on each month as per the varied number of days even if he makes his full attendance, but some companies gives you B.S for 30 days in contracts by keeping month = 30 days regardless of number of days exist in any month. They just follow that standard. This practice is being followed in most companies here in Kingdom.
Please correct me if I am wrong.
With Regards
From Paraguay
Its a good question, I think Mr. Deepak want to know.
Number of days vary in every month means, Feb has 28 or 29 days, March & other has 31 days & some months has 30 days. So in such case employee will get the varied basic salary on each month as per the varied number of days even if he makes his full attendance, but some companies gives you B.S for 30 days in contracts by keeping month = 30 days regardless of number of days exist in any month. They just follow that standard. This practice is being followed in most companies here in Kingdom.
Please correct me if I am wrong.
With Regards
From Paraguay
Dear All
Basic salary is a fixed element. We have to process the salary based on No of working days and no of actual days in a month. Pl find the following examples
Let us consider basic pay as 5000 Per month
In jan'09 - 31 days - Employee present 31 days then 5000/31*31=5000
In feb'09 - 28 days - Employee present 28 days then 5000/28*28=5000
In apr'09 - 30 days -Employee present 30 days then 5000/30*30=5000
Regards
venkatesh
9841160500
From India, Madras
Basic salary is a fixed element. We have to process the salary based on No of working days and no of actual days in a month. Pl find the following examples
Let us consider basic pay as 5000 Per month
In jan'09 - 31 days - Employee present 31 days then 5000/31*31=5000
In feb'09 - 28 days - Employee present 28 days then 5000/28*28=5000
In apr'09 - 30 days -Employee present 30 days then 5000/30*30=5000
Regards
venkatesh
9841160500
From India, Madras
Hi Deepak,
Further to the thread of discussions on this matter would like to add that ;
Section 12 of Provident Fund Act 1952 states that Employer cannot reduce salary of the employees……………..
The extract of the bare act is provided below :
12. Employer not to reduce wages etc
No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall by reason only of his liability for the payment of any contribution to the Fund or the Insurance Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly or indirectly the wages of any employee to whom the Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled under the terms of his employment express or implied.
Therefore you cannot reduce the basic salary of the employee under the abovesaid act.
Regards,
Rajat
From India, Pune
Further to the thread of discussions on this matter would like to add that ;
Section 12 of Provident Fund Act 1952 states that Employer cannot reduce salary of the employees……………..
The extract of the bare act is provided below :
12. Employer not to reduce wages etc
No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall by reason only of his liability for the payment of any contribution to the Fund or the Insurance Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly or indirectly the wages of any employee to whom the Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled under the terms of his employment express or implied.
Therefore you cannot reduce the basic salary of the employee under the abovesaid act.
Regards,
Rajat
From India, Pune
Dear Hassan,
Basic salary once fixed cannot be reduced. But it is payable based on number of days worked in a month. All deductions such as GOSI, etc. as per Saudi Law will need to be followed.
You are right that most of the employment contracts in the UAE/Mid-East have a standard 30 days for calculation of salary payable. They have presumed a simpler model since they do not offer complications of deductibles/contributions towards PF, ESI, etc that are prevalent in India.
In India, the actual days of each English calendar month are followed to account for such statutory deductions, payment of monthly salary and compliance of applicable wage laws here. But that is not the case in KSA.
Whatever is followed in KSA is acceptable and ok under the laws/federal laws in KSA. All calculations become simpler and charges (if paid by some section of employee) such as visa fees, IQAMA fees (New/Renewal), etc are easier to compute.
Rahul
09968270580
From India, New Delhi
Basic salary once fixed cannot be reduced. But it is payable based on number of days worked in a month. All deductions such as GOSI, etc. as per Saudi Law will need to be followed.
You are right that most of the employment contracts in the UAE/Mid-East have a standard 30 days for calculation of salary payable. They have presumed a simpler model since they do not offer complications of deductibles/contributions towards PF, ESI, etc that are prevalent in India.
In India, the actual days of each English calendar month are followed to account for such statutory deductions, payment of monthly salary and compliance of applicable wage laws here. But that is not the case in KSA.
Whatever is followed in KSA is acceptable and ok under the laws/federal laws in KSA. All calculations become simpler and charges (if paid by some section of employee) such as visa fees, IQAMA fees (New/Renewal), etc are easier to compute.
Rahul
09968270580
From India, New Delhi
Hi, As per Indian Law, Basic can’t be reduced in any cases but EARNED BASIC basic can be reduced depending on the attendance of the month. Regards arun
From India, Delhi
From India, Delhi
Dear Deepak,
The actual basic salary for any employee shall not be changed under any circumstances. Only the basic salary payable to the employee shall be changed as per the no of days worked in that respective month.
There is nothing called basic salary should be constant. The actual basic salary shall be fixed and shall be made payable depending upon the no of days worked/payable.
For e.g The gros salary for an employee is 12000/-p.m, his basic salary is been fixed at 6000/-p.m. If the employee has served for 29 days in the month of Mar, then his salary payable shall be gross salary/31*29 and this will be computed as basic salary/31*29 + the other comoponents/31*29.
Regards
Amit Anand Gera
From India, New Delhi
The actual basic salary for any employee shall not be changed under any circumstances. Only the basic salary payable to the employee shall be changed as per the no of days worked in that respective month.
There is nothing called basic salary should be constant. The actual basic salary shall be fixed and shall be made payable depending upon the no of days worked/payable.
For e.g The gros salary for an employee is 12000/-p.m, his basic salary is been fixed at 6000/-p.m. If the employee has served for 29 days in the month of Mar, then his salary payable shall be gross salary/31*29 and this will be computed as basic salary/31*29 + the other comoponents/31*29.
Regards
Amit Anand Gera
From India, New Delhi
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