Hai this is sudhakar,
I am working in Cement Industries as Hr - Officer.
we are calculating the attendance from 26 to 25 and paying salaries at 29 or 30th. if you want to change the dates the ten days salary will be paid on voucher payment.

From India, Hyderabad

Dear friend, I suggest you to take 26th to 25th (eg:25Jan To 26Feb) as working days and calculate the process and pay them on 1st of every month. Regards, pdlravi
From India, Hyderabad

  • You have following two options.
  • Option 1:
  • Supposing you wish to implement new salary cycle from 1st April '11. You will calculate and pay only 20 days salary for the period 1st to 20th April, since this being the first month of the new system. You may communicate this decision to all employees by issuing a official communication, in advance.
  • From next month on-wards, payment will be for 30 or 31 days, for the salary period 21st April to 20th May and so on.
  • Option 2:
  • You will pay salary for entire 30 days of April, but you will consider actual attendance, leave, absence for the period 1st to 20th April and you will assume that, all the employees were present on all days for the period 21st to 30th April and pay salary accordingly. You will adjust leave/s and absence of assumed period of attendance in next months salary. Same cycle will be followed every month.
  • Comparison of two Options
  • Second Option is little complicated for the understanding of the employees. Your time office software also needs to be customized accordingly and should have that scalability. There is a risk of employee abruptly leaving organization during last days of month, walking away with full salary. You stand a good chance of recovering excess salary only from other dues payable, if any.
  • First Option is very easy to understand and easy to implement. This will also need some customization in your time office software. Only hitch is you will have to convince your employees and Management to accept only 20 days salary for the first month against the promise of payment of salary on the last day of every month without fail.

From India, Pune

1.For the first when you change over you may have to work out salary for the broken period. I suggest, as we also follow, for the purpose of closing the attendance you may follow salary month will be from 19th of current month to 20th of the following month. When you close the month with attendance on 20th it will be easy for you to calculate salary and disburse on or before 30th of any calendar month. This will solve lots of problem like TDS, PT etc. also. Only thing for the first month of change over you have to disburse salary for the initial broken period. For eg. if the new system will be introduced from 19.4.2011 then salary for 1.4.2011 to 18.4.11 shall be calculated separately and paid on or before say 20.4.11 or merged in the salary for the period from 19.4.11 to 20.5.11 and disbursed for the initial month of new system. Then from May onwards you will have no problem in following the cycle. By this method all related aspects like leave, allw. etc. all will be deemed to cover 19 to 20th month system.

Refer part of your post marked in Bold above. Here, you are bit confused and and also confusing others. 'In case salary for 1.4.2011 to 18.4.11 is merge in the salary for the period from 19.4.11 to 20.5.11 and disburse for the initial month of new system', no salary will be paid for April or during April. How do you expect employees to accept this and survive without salary for a month, though, it will be added in next month.

From India, Pune

Dear Mr. Santosh,
Please initiate the move considering the cycles calculating the attendance from 1st to 20th of the salary date changing month and second one 21st to 20th of the following month. The cycles only meant for calculation of Leave/Absenteeism etc.Salary shall be payable for the full month (being paid on last day of month).

From India, Delhi

We too have a system of attendence from 20th to 20th. but this creates a lot of problems on the long run , esp with regards to attendence and unauthorised absece for which salary has to be deducted.
My advice would be to continue with the present system of 1st to 30th and payment on 10th. u may if required change the payment date to 5th of the following month.

From India, Mumbai

Dear all (who feels confused),

This is further to add what has been suggested earlier -

Assume the follg-

1.Salary for 1.3.11 to 31.3.11 already paid under old system;

2. To Regulate April salary which month involved the new cycle -

i) 1.4.11 to 19.4.11 (Date of begining of new cycle may be chosen as per your convenience) - Close the attendances on 19th, process and arrange to pay before, say any time after 19th April.

ii) For full month wage period - 20.4.11 and upto 19.5.11 calculate for full month and disburse salary anytime as you feel before 30.5.11. Here the last date falls not later than 30th. You may suitably alter the begining and ending days of the wage period.

iii) 20.5.11 to 19.6.11 wages due on or before 30th june. and so on.

Here pl.note you are not over due any salary beyond one month, no under payment or over payment. Leave etc. also simultaneously closed from 20th to 19th.

Pl.note this system is only for calculation of wages not for any other purpose. Even for IT calculation also the year is the same, computing only for 12 months. Not more or less.


1. If governed by Payment of wages Act and Union is involved - execute a Tripartite agreement also involving the Labour commissioner.

2. Put up proper notice on your NB and/or print and distribute the arrangement in a form of hand bill and see everyone gets it. Also publish in your house journal if any. (Ref. Sec.25 of the Payment of wages act.)

Caution: Sec.4 (2) of Payment of Wages Act. " No wage period shall exceed one month"

Sec 5: "If < 1000 employees are employed - Wages must be paid before expiry of the 7th day after the last day of the relevant wage period.

If >1000 employed, wages should be paid before expiry of the 10th day after the last day of the wage period in respect of which wages are payable.

Many companies employing thousands ( at one point of point of time our co. had 44,000 employees on roll) and we are follg. 19 to 20 wage period.

This is not a rocket science, only determination to do what is required and convenient.

Rgds, Kumar.

From India, Bangalore

Now you have come out clearly. No confusion. So in a example given by you, employees will be paid only for 19 days, in April '11.
From India, Pune

We normally calculate employees wages by taking 26th to 25th and pay the wages on 1st of every month example - 26Feb To 25Mar and pay salaries on April 01, 2011 in this method the HR will get five to six days for calculating the wages.

From India, Hyderabad
Dear Mr Santosh
Calculate the salary from 1st to 25th forthe first month and assume the last 5 days of the employees would be present
Eg: From 1st March to 25st March=Already paid
New Salary Dates Implemented from 1st April-25th April=25 Days+5days (Assumed Employee ill be present)
If any Leave or LOP is availed by the employee calculate it in the second month i.e for the cycle 26st April to 25th May.From Second Month this will come in order.

From India, Gurgaon

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