Avp - Hr, Admin & Finance
Labour Laws Consultant
Employee Comp & Ben
Logistics Operation Executive
Asst. Manager - Hr
Salary is fixed for a month ( 30 / 31 days ) and is payable for employees on prorata basis on number of days worked in a month.
Thus all components of your salary are payable equal to the number of days you work in that month. for example if your salary looks like this :
Basic : 3500
HRA : 1750
Other : 750
Total : 6000
You will divide the salary by the no. of days in a month and pay as per the attendance. The deduction will also happen as per attendance.
Hop this explains how basic will differ, based on the number of days put.
Please note that Basic amount is fixed for a period and can not be reduced by any employer during the term of employment, it can only increase.
4th January 2011 From India, Mumbai
Gross salary- 9000 per month
Basic salary- 5850
present days-12 days in the month of October
now my senior calculated salary as-
October salary PF Amount deduction Net salary payable
(9000*12/31)=3483.87 3483*65%*12%=271.67 3483-271.67=3211.33
Is it right method? as first he calculated salary for present days i.e. basic salary and then on that basic he deducted PF.
Please reply soon...
4th January 2011 From India, Thana
To my best of knowledge employees/labours are getting their compensation on daily or monthly basis.
In daily basis there is no classification of basic or any allowance. So when a person is getting basic salary means getting the monthly compensation.
Now coming back to the question asked that can the basic salary changed every month?
Answer is NO if there is not absence.
If a person has attended office without any absence during a particular month, as per prescribed policy of the respective organisation. Normally it happens 8 hr per day if not specified otherwise.
On the other hand if an employee had some absence then deduction happens in total compensation and all other allowances got changed along with basic.
5th January 2011 From India, New Delhi
Basic : 9000/- per day = 290.32
Total working days = 12 thus 12 x 290.32 = 34833.87
Deduction of PF @ 12% = 418.06
Total Basic payable = 3065.80/-
All other components will be calculated for 12 days in similar fashion.
5th January 2011 From India, Mumbai
as per the data you have given, it is clear that the basic salary is 65% of the Gross salary and the no. of days present is 12 out of 31 days.
hence the gross salary will be = 9000*12/31 = 3486.87 or rounded to 3484
and basic can be calculated as = 3484*65% = 2264.6 or rounded to 2265
or = 5850*12/31 = 2264.51 rounded to 2265.
pf is calculated on the basic, hence = 2265*12% = 271.8 rounded to 272
or = (5850*12/31)*12%
or = (9000*12/31)*65%*12%
any of the relations can be used as they will lead to same result and are logically correct also. it is like getting a product of 12 by either multiplting 3*4, or 2*6, or 1*12, or 2*2*3. in all cases you will get the result 12.
I hope that it is clear now.
5th January 2011 From India, Delhi
It is however paossible for Basic pay to be variable. An example is of an organization which pays the monthly salary based on the working days in a month and not by the calendar days. The net effect in a calendar year will be the same, but the salary will vary month to month.
5th January 2011 From India, Madras
Thanks for your suggestions and calculation..
@ pradyumna_atri - you are saying that whatever calculation i did is right...but did you check that above your thread "shridharb2004" this guy is calculating differently..so i am again confused which method is correct or both r correct...
6th January 2011 From India, Thana
Pl note if 31st days in a month and pay days are 12 only.
Rate of Wage 9000/- break up of wage & calculation as under:-
a)If = 5850/-% 31*12=2265/- PF deduction @12% will be 272/- on earned basic.
b)Other All. = 3150/-%31*12=1219/-
c) Total earned wage =3484/- ESI -
PF @12%= 272/- on earned basic.
I hope you will be satisfied.
7th January 2011 From India, New Delhi
Can I calculate salary of any employee by directly calculating on the basis of his total monthly salary and then by multiplying that salary with number of days that is being divided by total number of days.like this:-
Salary of XYZ month of any employee= total salary *number of days he worked/31
9th June 2013 From India, Delhi