Hi all,
I\'m a budding HR generalist. I\'m placing my doubts regarding payroll here. Kindly help me with facts.
1.Whether salary has to be calculated based on the no. of days worked or no. of leave taken? Both has difference according to my calculation.
2.How should salary per day be calculated during months having 31 days?
From India, Madurai
I\'m a budding HR generalist. I\'m placing my doubts regarding payroll here. Kindly help me with facts.
1.Whether salary has to be calculated based on the no. of days worked or no. of leave taken? Both has difference according to my calculation.
2.How should salary per day be calculated during months having 31 days?
From India, Madurai
Dear vidyavishwanath,
In the view of your above question, when an employee is deployed, his salary woulkd be calculated in monthly basis.
We have to divide the monthly gross salary by 30 days (30 days as we are also paying for the weekly offs in the month deducting one day as month means calculated for 30 days). In case of daily wages, the weekly offs are not counted and paid only for 26 days.
So we calculate as follows: Salary per month (Gross)/ 30 days in a month x No. of days present
Example: 5000/30 * 25 = 4166
Monthly salary = 5000 * 25/36 = 4166 (same as above)
From India, Visakhapatnam
990In the view of your above question, when an employee is deployed, his salary woulkd be calculated in monthly basis.
We have to divide the monthly gross salary by 30 days (30 days as we are also paying for the weekly offs in the month deducting one day as month means calculated for 30 days). In case of daily wages, the weekly offs are not counted and paid only for 26 days.
So we calculate as follows: Salary per month (Gross)/ 30 days in a month x No. of days present
Example: 5000/30 * 25 = 4166
Monthly salary = 5000 * 25/36 = 4166 (same as above)
From India, Visakhapatnam
in sharmilas case if i take 1 day leave in a month of 31 days and i am present for 30 days then my pay will be
5000/30*30=5000/- means no loss of pay.
As per my knowledge there are two methods , one is payment for actual attendance and another one is deduction of LOP from gross.
First method:
Payment for actual attendance
salary / no of days in month * total present days (incl weekoffs)
Assume i took two days leave in a month of 31 days :
5000/31*29 = 4677 Rs.
Assume i took two days leave in month of 30 days
5000/30*29 = 4833 Rs.
Second Method:
Deduction of Lop from Gross.
If my pay is 5000 then taking base of 30 days my LOP per day is calculated. i.e 5000/30 Rs.166.7 or 168/- so as per method II my LOP per day is 168 Rs so in a month if I am absent for 2 days my LOP will be 336 Rs and my eligible pay will be Rs.4664/- Rs.
Method one is benefitial to the employee whereas method II is benefitial to employer.
IF i am wrong kindly explain with examples which method you follow.
From India, Madras
5000/30*30=5000/- means no loss of pay.
As per my knowledge there are two methods , one is payment for actual attendance and another one is deduction of LOP from gross.
First method:
Payment for actual attendance
salary / no of days in month * total present days (incl weekoffs)
Assume i took two days leave in a month of 31 days :
5000/31*29 = 4677 Rs.
Assume i took two days leave in month of 30 days
5000/30*29 = 4833 Rs.
Second Method:
Deduction of Lop from Gross.
If my pay is 5000 then taking base of 30 days my LOP per day is calculated. i.e 5000/30 Rs.166.7 or 168/- so as per method II my LOP per day is 168 Rs so in a month if I am absent for 2 days my LOP will be 336 Rs and my eligible pay will be Rs.4664/- Rs.
Method one is benefitial to the employee whereas method II is benefitial to employer.
IF i am wrong kindly explain with examples which method you follow.
From India, Madras
I faced the same problem what you have explained and i followed the 2nd method. I just wanna make sure if that\'s the correct method in practice.
From India, Madurai
From India, Madurai
what will you do in the month of February ? In February there are 29 days and during leapyear it is 28 days.
So the calculations can be gross salary divided by days in month multiplied by present days (including sundays and official holidays) minus leaves ( per hour / per days basis)
There are 7 31 days in a calendar year with 4 30 days and one 29 days.
Cheating some one's money is not justified. Even Re 1 not paying to deserving person is nothing but stealing .
From India, Mumbai
So the calculations can be gross salary divided by days in month multiplied by present days (including sundays and official holidays) minus leaves ( per hour / per days basis)
There are 7 31 days in a calendar year with 4 30 days and one 29 days.
Cheating some one's money is not justified. Even Re 1 not paying to deserving person is nothing but stealing .
From India, Mumbai
please anyone tell me We will give salary increment to our employee without affecting their basic salary. how can it possible?
From Bangladesh, Dhaka
From Bangladesh, Dhaka
why cant it be like this:
since 12 months & 365 days in a year (not leap year)
salary per month - 25,000 (twenty five thousand)
Salary per Month*12months
25,000*12=300,000 (yearly salary is 3 lacs)
yearly salary divided by days in that year
300,000/365= 821.91 (so the salary shall be 821.91 per day)
and i think this is most accurate concept to calculate, there is no issue with 30 days month or 31 days month or 28 or 29 plus the salary is being divided by all year including national holidays and sundays. so employee and employer both are equal here.
i use this same method. kindly let me know if i am wrong.
From India, Hyderabad
since 12 months & 365 days in a year (not leap year)
salary per month - 25,000 (twenty five thousand)
Salary per Month*12months
25,000*12=300,000 (yearly salary is 3 lacs)
yearly salary divided by days in that year
300,000/365= 821.91 (so the salary shall be 821.91 per day)
and i think this is most accurate concept to calculate, there is no issue with 30 days month or 31 days month or 28 or 29 plus the salary is being divided by all year including national holidays and sundays. so employee and employer both are equal here.
i use this same method. kindly let me know if i am wrong.
From India, Hyderabad
Dear All,
I have read all the above conversation. Actually I am looking up a project where employees are allowed to take Sundays as off days. If I apply the above mentioned methods in a case where employee was present for only 1 day then I am paying him for 5 days. Like his gross monthly salary is Rs 26,000.
Assume he took 25 days leave in a month of 30 days:
26,000/30*(30-25)= 4,333
So I think this method is not applicable where employees are allowed to have Sundays off without any deduction from salary. My problem is that my boss asks me to divide monthly salary by number of days in a month and accommodate Sundays as well.
So I want have such formula where I can divide salary by number of days in a month (also not deducting for Sundays) as well as not paying extra money where employee present for only few days. Kindly shed some light on this.
From Pakistan, Rawalpindi
I have read all the above conversation. Actually I am looking up a project where employees are allowed to take Sundays as off days. If I apply the above mentioned methods in a case where employee was present for only 1 day then I am paying him for 5 days. Like his gross monthly salary is Rs 26,000.
Assume he took 25 days leave in a month of 30 days:
26,000/30*(30-25)= 4,333
So I think this method is not applicable where employees are allowed to have Sundays off without any deduction from salary. My problem is that my boss asks me to divide monthly salary by number of days in a month and accommodate Sundays as well.
So I want have such formula where I can divide salary by number of days in a month (also not deducting for Sundays) as well as not paying extra money where employee present for only few days. Kindly shed some light on this.
From Pakistan, Rawalpindi
Moreover, to accommodate Sundays we have to divide total salary by total month days - Sundays. For example, 26,000/31-5=1,000 per day salary. Now if he takes 1 leave then we will pay him 25,000 salary and so on. Employee calculates his per day salary as (26,000/31 = 839) and can ask us that why we have deducted 1,000 instead of 839. How can we avoid this confusion?
What I think is that we have to guide him that since we are not deducting your salary for Sundays offs hence we took only work days (Month days - Sundays). Which comes to 26 days hence your total salary would be divided on work days to accommodate Sundays.
If we ask them to work on Sundays we pay them overtime for the hours they worked for. Now the question arises that what would be the per hour wage rate here keeping in view the above scenario. (employee works for 8 hours shift daily)
Will it be 26,000/31/8*hours worked OR 26,000/26/8*hours worked?
From Pakistan, Rawalpindi
What I think is that we have to guide him that since we are not deducting your salary for Sundays offs hence we took only work days (Month days - Sundays). Which comes to 26 days hence your total salary would be divided on work days to accommodate Sundays.
If we ask them to work on Sundays we pay them overtime for the hours they worked for. Now the question arises that what would be the per hour wage rate here keeping in view the above scenario. (employee works for 8 hours shift daily)
Will it be 26,000/31/8*hours worked OR 26,000/26/8*hours worked?
From Pakistan, Rawalpindi
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