Dear Professionals,
As per Indian labor law, what is the legal way of calculating the per-day salary of employees with the following details:
Gross salary: 100,000 per month
Number of days in a month: 31 (e.g., for the month of August)
Date of joining: 13th August '12
Question/Confusion:
Number of working days - (100,000 / 31) * (31 - 13 + 1) or
Number of working days - (100,000 / 30) * (30 - 13 + 1)
Regards
From India, Delhi
Acknowledge(0)
Amend(0)
9As per Indian labor law, what is the legal way of calculating the per-day salary of employees with the following details:
Gross salary: 100,000 per month
Number of days in a month: 31 (e.g., for the month of August)
Date of joining: 13th August '12
Question/Confusion:
Number of working days - (100,000 / 31) * (31 - 13 + 1) or
Number of working days - (100,000 / 30) * (30 - 13 + 1)
Regards
From India, Delhi
Acknowledge(0)Amend(0)
Hi,
It's Gross Salary / No. of days in that month * Total Paid Days. If the Gross salary is 25000/-, then the Per day salary for August is Rs.806. If an Employee is joining on the 13th of August, then the Gross salary will be 19 * 806 = Rs.15314/-
Regards, Karthik
From India, Vijayawada
Acknowledge(2)
Amend(0)
It's Gross Salary / No. of days in that month * Total Paid Days. If the Gross salary is 25000/-, then the Per day salary for August is Rs.806. If an Employee is joining on the 13th of August, then the Gross salary will be 19 * 806 = Rs.15314/-
Regards, Karthik
From India, Vijayawada
Acknowledge(2)Amend(0)
Dear Ms. GHR,
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 the month means calculated for 30 days). In the 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).
Please check the below link for more information on the same: https://www.citehr.com/430332-how-calculate-salary.html
From India, Visakhapatnam
Acknowledge(3)
Amend(0)
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 the month means calculated for 30 days). In the 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).
Please check the below link for more information on the same: https://www.citehr.com/430332-how-calculate-salary.html
From India, Visakhapatnam
Acknowledge(3)Amend(0)
Dear Ms. GHR,
Please note that the standard working days to be considered is 30 days irrespective of whether the number of days in a month is 28/29/30/31 days. For salary calculation, you need to consider 30 days only. Therefore, the standard formula stands this way for calculating salary: Gross salary/30 days * No. of working days.
Regards,
Bharghavi
From India, Bangalore
Acknowledge(5)
Amend(0)
Please note that the standard working days to be considered is 30 days irrespective of whether the number of days in a month is 28/29/30/31 days. For salary calculation, you need to consider 30 days only. Therefore, the standard formula stands this way for calculating salary: Gross salary/30 days * No. of working days.
Regards,
Bharghavi
From India, Bangalore
Acknowledge(5)Amend(0)
Dear Ms. GHR,
The salary is calculated as below:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked
Gross salary = 100,000
So for 28 days, Actual Salary = 100,000 / 28 * 28 = 100,000. His 1-day salary is 3,571/-
For 30 days, Actual Salary = 100,000 / 30 * 30 = 100,000. His 1-day salary is 3,333/-
For 31 days, Actual Salary = 100,000 / 31 * 31 = 100,000. His 1-day salary is 3,225/-
So as per your query, the employee has joined on 13-Aug-2012, so he has worked for 19 days in the month.
Therefore, the gross salary = 100,000 / 31 * 19 = 61,290. His 1-day salary is 3,225.80/-
From India, Mumbai
Acknowledge(8)
Amend(0)
The salary is calculated as below:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked
Gross salary = 100,000
So for 28 days, Actual Salary = 100,000 / 28 * 28 = 100,000. His 1-day salary is 3,571/-
For 30 days, Actual Salary = 100,000 / 30 * 30 = 100,000. His 1-day salary is 3,333/-
For 31 days, Actual Salary = 100,000 / 31 * 31 = 100,000. His 1-day salary is 3,225/-
So as per your query, the employee has joined on 13-Aug-2012, so he has worked for 19 days in the month.
Therefore, the gross salary = 100,000 / 31 * 19 = 61,290. His 1-day salary is 3,225.80/-
From India, Mumbai
Acknowledge(8)+3 more
Amend(0)
Dear Sharmila,
You mentioned that standard working days should be considered as 30 days in a month irrespective of 28/29/30/31. However, suppose the salary is to be calculated for the month of August (for example, with 31 days in that month). In such a case, should we consider 30 days as standard working days for calculation, or should we consider 31 days for the calculation? (Gross salary/total days in that month * number of days present) 5000/31*28 = Rs.4516.66, or 5000/30*28 = Rs.4666.66.
Please clarify this for me.
Thanks,
Dhana
From India, Chennai
Acknowledge(0)Amend(0)
You mentioned that standard working days should be considered as 30 days in a month irrespective of 28/29/30/31. However, suppose the salary is to be calculated for the month of August (for example, with 31 days in that month). In such a case, should we consider 30 days as standard working days for calculation, or should we consider 31 days for the calculation? (Gross salary/total days in that month * number of days present) 5000/31*28 = Rs.4516.66, or 5000/30*28 = Rs.4666.66.
Please clarify this for me.
Thanks,
Dhana
From India, Chennai
Acknowledge(0)Amend(0)
Dear Dhana,
If your gross salary is fixed at Rs. 30,000 per month (for example), it does not mean that your daily salary is Rs. 1000. In such a case, you would receive only Rs. 28,000 in the month of February and Rs. 31,000 in the month of August. However, in practice, this is not the case. Even though February has 28 days and August has 31 days, you still receive Rs. 30,000 as your salary. Therefore, the standard of 30 days is to be considered.
Hope this clarifies things for you.
Regards,
Bharghavi
From India, Bangalore
Acknowledge(4)Amend(0)
If your gross salary is fixed at Rs. 30,000 per month (for example), it does not mean that your daily salary is Rs. 1000. In such a case, you would receive only Rs. 28,000 in the month of February and Rs. 31,000 in the month of August. However, in practice, this is not the case. Even though February has 28 days and August has 31 days, you still receive Rs. 30,000 as your salary. Therefore, the standard of 30 days is to be considered.
Hope this clarifies things for you.
Regards,
Bharghavi
From India, Bangalore
Acknowledge(4)Amend(0)
As per the Supreme Court of India in the case of Guru Jambheshwar University through Registrar Vs. Respondent Dharam Pal, the salary calculation under the Industrial Disputes Act, 1947, including Sections 2, 2A, 10(1), and 25F, as well as the Payment of Gratuity Act, 1987, involving Sections 2, 4, 4(1), 4(2), and 4(3), and the Constitution of India - Articles 14, 16, and 136, and the Payment of Gratuity (Amendment) Act, 1987, states that the monthly wage or salary calculation should be based on 26 days only.
Regards,
Veda Team
VEDA Consultants
From India, Madras
Acknowledge(2)Amend(0)
0
0
Regards,
Veda Team
VEDA Consultants
From India, Madras
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Checked)-[response] (1 Acknowledge point)
0
0
Dear Vedal,
The calculation is only for gratuity and not to calculate the monthly salary of the employee. Also, the 26-day salary will be calculated for daily wage workers and not for monthly salaried employees.
@ Bhargavi,
You have rightly said the practice, but the 30-day standard is not considered for every month. It is based on the number of days in the month.
From India, Mumbai
Acknowledge(2)
Amend(0)
The calculation is only for gratuity and not to calculate the monthly salary of the employee. Also, the 26-day salary will be calculated for daily wage workers and not for monthly salaried employees.
@ Bhargavi,
You have rightly said the practice, but the 30-day standard is not considered for every month. It is based on the number of days in the month.
From India, Mumbai
Acknowledge(2)Amend(0)
Dear Bhargavi,
Thank you for the information you provided. You mentioned that we should consider only 30 days as standard working days regardless of the month, but Mr. Shenbagarajan has specified that in practice, 30 days as standard working days are not considered. Can you please tell me which is correct - 30 or 31 days?
Thank you,
Dhana
From India, Chennai
Acknowledge(1)
Amend(0)
Thank you for the information you provided. You mentioned that we should consider only 30 days as standard working days regardless of the month, but Mr. Shenbagarajan has specified that in practice, 30 days as standard working days are not considered. Can you please tell me which is correct - 30 or 31 days?
Thank you,
Dhana
From India, Chennai
Acknowledge(1)Amend(0)
Hi all,
What Veda Consultants said is right. The gross salary should be divided by 26 for calculating per day wages. However, in the case of gratuity, we use to divide it by 30 days in order to control the company's liability.
For example:
Gross salary: 10000
Per day Salary = 10000/26 = 384.61
Even if he has given full attendance, i.e., 27 days of working in August, his salary will be 10000 + 384.61 because we have to pay for August 15th. But in other cases, if he worked for 27 days, his salary will be 10000 only. In February, he is supposed to work for 24 days only, but he should be paid the whole salary of 10000. No queries in that.
From India, Coimbatore
Acknowledge(2)Amend(0)
What Veda Consultants said is right. The gross salary should be divided by 26 for calculating per day wages. However, in the case of gratuity, we use to divide it by 30 days in order to control the company's liability.
For example:
Gross salary: 10000
Per day Salary = 10000/26 = 384.61
Even if he has given full attendance, i.e., 27 days of working in August, his salary will be 10000 + 384.61 because we have to pay for August 15th. But in other cases, if he worked for 27 days, his salary will be 10000 only. In February, he is supposed to work for 24 days only, but he should be paid the whole salary of 10000. No queries in that.
From India, Coimbatore
Acknowledge(2)Amend(0)
Dear Dhana,
I am still unsure as to why there is such a bizarre thought in your mind. When calculating the salary, it should always be kept in mind that 30 days is the count for employees employed as per the Factories Act. In the case of daily wages paid, the weekly offs are not counted. In that meticulous condition, it is therefore considered to be 26 days.
I presume that this clears up your query.
From India, Visakhapatnam
Acknowledge(1)Amend(0)
I am still unsure as to why there is such a bizarre thought in your mind. When calculating the salary, it should always be kept in mind that 30 days is the count for employees employed as per the Factories Act. In the case of daily wages paid, the weekly offs are not counted. In that meticulous condition, it is therefore considered to be 26 days.
I presume that this clears up your query.
From India, Visakhapatnam
Acknowledge(1)Amend(0)
Hi Sharmila,
For monthly salaried people, we have to divide the gross salary by 26 days. For weekly waged employees, we will fix their per day salary as per the minimum wages act. So, for them, there is no need to divide. We just have to multiply the number of days they have worked by their per day salary. This is the procedure we are following. We are a manufacturing company employing around 200 employees. We have faced many inspections for IF, PF, and ESI. They also did not criticize this procedure.
From India, Coimbatore
Acknowledge(1)Amend(0)
For monthly salaried people, we have to divide the gross salary by 26 days. For weekly waged employees, we will fix their per day salary as per the minimum wages act. So, for them, there is no need to divide. We just have to multiply the number of days they have worked by their per day salary. This is the procedure we are following. We are a manufacturing company employing around 200 employees. We have faced many inspections for IF, PF, and ESI. They also did not criticize this procedure.
From India, Coimbatore
Acknowledge(1)Amend(0)
Dear Dhana, We follow 30 days as standard and we are practicing the same in our company Regards, Bharghavi
From India, Bangalore
Acknowledge(1)Amend(0)
From India, Bangalore
Acknowledge(1)Amend(0)
Dear All,
Per day salary will always vary from month to month. For example, if your monthly salary is 30,000/-, then for the month of Feb = 30000/28, which means the per day salary in Feb is 1071. For the month of Mar = 30000/30, which means the per day salary in Mar is 1000. For the month of Apr = 30000/31, which means the per day salary in Apr is 968.
Always keep in mind that the per day salary only comes into play when we have to pay short in that particular month, either in the case of a new join or for LOP.
Regards,
From India, Hyderabad
Acknowledge(3)Amend(0)
Per day salary will always vary from month to month. For example, if your monthly salary is 30,000/-, then for the month of Feb = 30000/28, which means the per day salary in Feb is 1071. For the month of Mar = 30000/30, which means the per day salary in Mar is 1000. For the month of Apr = 30000/31, which means the per day salary in Apr is 968.
Always keep in mind that the per day salary only comes into play when we have to pay short in that particular month, either in the case of a new join or for LOP.
Regards,
From India, Hyderabad
Acknowledge(3)Amend(0)
Hi k_shenbagarajan,
As per your reply, how does the daily salary change every month? You mentioned dividing by 28/29/30/31. If a person does not work on all Sundays, their salary would be less than the fixed amount, right? Could you please clarify this for me?
Thank you.
From India, Coimbatore
Acknowledge(1)
Amend(0)
0
0
As per your reply, how does the daily salary change every month? You mentioned dividing by 28/29/30/31. If a person does not work on all Sundays, their salary would be less than the fixed amount, right? Could you please clarify this for me?
Thank you.
From India, Coimbatore
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-The calculation of per day salary based on the number of working days in a month should be (Gross salary / Total days in the month excluding non-working days). This ensures fair pay regardless of the actual number of Sundays in a month. (1 Acknowledge point)
0
0
Hi Suresh, Sunday is a paid holiday. We should not consider it for per day calculation. this is my experience. correct me if i am wrong,
From India, Coimbatore
Acknowledge(0)Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
Corrected Text:
Correctly said by Brindha, Sunday or any week off as per the work requirement is a paid holiday. One should not calculate the paydays excluding the week off for monthly payments. Only absences or excess leaves as LOP will be deducted, that too calculating the per day salary for that month.
Regards
From India, Hyderabad
Acknowledge(0)Amend(0)
0
0
Correctly said by Brindha, Sunday or any week off as per the work requirement is a paid holiday. One should not calculate the paydays excluding the week off for monthly payments. Only absences or excess leaves as LOP will be deducted, that too calculating the per day salary for that month.
Regards
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[B]Response[/B]: The calculation method mentioned is correct. Paid holidays like Sundays should be included in the per day salary calculation. Only absences or leaves without pay are deducted. (1 Acknowledge point)
0
0
Dear Brindha,
I'm not sure what your company follows and what they haven't criticized. All is in one part which avers two ways:
(i) When you say 26 days, employees' 4 days' weekly offs aren't counted for calculation.
(ii) In case of 30 days, the entire month including weekly offs is counted to proportionate maneuver when calculating. Most companies follow a methodical 30-day computation to avoid any hindrances in calculating leaves as well.
For instance, Gross salary/30 days in a month x no. of days present (10000/30*25 = 8333.33) In case of 26 days count (10000/26*25 = 9615.38) Difference is 1486.05, In which way is the accountability of the employer? Please justify!
Sincerely, [Your Name]
From India, Visakhapatnam
Acknowledge(0)Amend(0)
I'm not sure what your company follows and what they haven't criticized. All is in one part which avers two ways:
(i) When you say 26 days, employees' 4 days' weekly offs aren't counted for calculation.
(ii) In case of 30 days, the entire month including weekly offs is counted to proportionate maneuver when calculating. Most companies follow a methodical 30-day computation to avoid any hindrances in calculating leaves as well.
For instance, Gross salary/30 days in a month x no. of days present (10000/30*25 = 8333.33) In case of 26 days count (10000/26*25 = 9615.38) Difference is 1486.05, In which way is the accountability of the employer? Please justify!
Sincerely, [Your Name]
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Dear All,
The following will be the formula used for calculating the salary:
For monthly salaried people for the days 28, 29, 30, and 31 days:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked + week offs.
For salaries based on daily wages:
Actual Salary = Gross Salary / 26 * No of days worked.
@ Suresh, it is a paid holiday.
Here, everyone is calculating for full attendance. If you have any LOP or are absent, only then will you know the problem. It is not easy to solve the issue when a worker asks for the same because every rupee matters to him.
Let us consider an example:
If a person's gross salary is Rs. 10,000/-, and he has 1 LOP in August, his salary has to be calculated as follows:
Gross Salary = 10000 / 31 * 30 = 9677.40/-
Not as below for August (as per Bhargavi/Sharmila):
Salary = 10000 / 30 * 29 = 9666.66/-
Understand that every rupee counts for the employee.
From India, Mumbai
Acknowledge(2)Amend(0)
The following will be the formula used for calculating the salary:
For monthly salaried people for the days 28, 29, 30, and 31 days:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked + week offs.
For salaries based on daily wages:
Actual Salary = Gross Salary / 26 * No of days worked.
@ Suresh, it is a paid holiday.
Here, everyone is calculating for full attendance. If you have any LOP or are absent, only then will you know the problem. It is not easy to solve the issue when a worker asks for the same because every rupee matters to him.
Let us consider an example:
If a person's gross salary is Rs. 10,000/-, and he has 1 LOP in August, his salary has to be calculated as follows:
Gross Salary = 10000 / 31 * 30 = 9677.40/-
Not as below for August (as per Bhargavi/Sharmila):
Salary = 10000 / 30 * 29 = 9666.66/-
Understand that every rupee counts for the employee.
From India, Mumbai
Acknowledge(2)Amend(0)
Hi Sharmila,
For a month, there should be 4 days off per week. Specifically, 4 Sundays will not be considered for the daily salary calculation. Therefore, the gross salary should be divided by 26 days only, not by 30 days.
From India, Coimbatore
Acknowledge(0)Amend(0)
For a month, there should be 4 days off per week. Specifically, 4 Sundays will not be considered for the daily salary calculation. Therefore, the gross salary should be divided by 26 days only, not by 30 days.
From India, Coimbatore
Acknowledge(0)Amend(0)
Hi Brindha,
Kindly provide examples for the following based on your experience:
1. If the monthly salary is $12,000:
- Scenario 1: In September, working for 24 days with 1 day of loss of pay (LOP), what will be the salary?
- Scenario 2: In September, working for 27 days including 3 Sundays and 1 LOP,
- Scenario 3: In September, working for 25 days.
Thank you.
From India, Coimbatore
Acknowledge(0)Amend(0)
Kindly provide examples for the following based on your experience:
1. If the monthly salary is $12,000:
- Scenario 1: In September, working for 24 days with 1 day of loss of pay (LOP), what will be the salary?
- Scenario 2: In September, working for 27 days including 3 Sundays and 1 LOP,
- Scenario 3: In September, working for 25 days.
Thank you.
From India, Coimbatore
Acknowledge(0)Amend(0)
Dear Brindha,
I hope you are in the process of calculating the salary for CL's. If so, your formula should be working out correctly. This calculation is based on daily wages and does not apply to monthly salaried employees, as Sundays are considered a paid holiday for them.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
I hope you are in the process of calculating the salary for CL's. If so, your formula should be working out correctly. This calculation is based on daily wages and does not apply to monthly salaried employees, as Sundays are considered a paid holiday for them.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
According to the total days in the particular month that only consider to pay the salary.Eg january having 31 days february having 28 days.. Raju, HRD
From India, Secunderabad
Acknowledge(0)Amend(0)
From India, Secunderabad
Acknowledge(0)Amend(0)
I second Mr. Shenbagarajan.
Dear Ms. GHR,
There has been a difference of opinion called into question. The best solution I found for your query is to use the following link for your monthly salary calculations.
Hope you won't have to struggle with what to do.
CiteHR attribution:
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Dear Ms. GHR,
There has been a difference of opinion called into question. The best solution I found for your query is to use the following link for your monthly salary calculations.
Hope you won't have to struggle with what to do.
CiteHR attribution:
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Hi Suresh,
Please be clear that for staff who are working on a monthly basis, you can't consider their work on Sundays, so there is no need to pay for that. They are showing their own interest in completing their tasks. For that, you can give compensatory time off on other days.
But in the case of workers receiving daily wages or on a weekly basis, you can pay for 26 days at the normal rate. That means their daily wage will be 461.53. However, for Sundays, you have to pay overtime wages, which are double the daily wage.
So for Example 1, the pay will be 11520. For Examples 2 and 3, the pay will be 12000 in the case of Company staff. In Example 2, for workers, the pay will be 14880.
Therefore, the daily wages will be calculated based on the number of working days in that particular month. Alternatively, you can use the following formula regardless of the month: (Gross Salary * 12) / 309 days = daily wage.
This is what I am following.
From India, Coimbatore
Acknowledge(0)Amend(0)
Please be clear that for staff who are working on a monthly basis, you can't consider their work on Sundays, so there is no need to pay for that. They are showing their own interest in completing their tasks. For that, you can give compensatory time off on other days.
But in the case of workers receiving daily wages or on a weekly basis, you can pay for 26 days at the normal rate. That means their daily wage will be 461.53. However, for Sundays, you have to pay overtime wages, which are double the daily wage.
So for Example 1, the pay will be 11520. For Examples 2 and 3, the pay will be 12000 in the case of Company staff. In Example 2, for workers, the pay will be 14880.
Therefore, the daily wages will be calculated based on the number of working days in that particular month. Alternatively, you can use the following formula regardless of the month: (Gross Salary * 12) / 309 days = daily wage.
This is what I am following.
From India, Coimbatore
Acknowledge(0)Amend(0)
Dear Concern,
As per Indian law, if any candidate joins in the middle of the month, the salary would be calculated based on days, not the entire month. For example, if you join on the 15th and the month has 31 days, your salary would be calculated for 16 days. If you join on the 1st, then your salary would be calculated on a monthly basis, i.e., for 30 days.
Thanks & Regards,
Rajesh Negi
From India, Delhi
Acknowledge(1)Amend(0)
As per Indian law, if any candidate joins in the middle of the month, the salary would be calculated based on days, not the entire month. For example, if you join on the 15th and the month has 31 days, your salary would be calculated for 16 days. If you join on the 1st, then your salary would be calculated on a monthly basis, i.e., for 30 days.
Thanks & Regards,
Rajesh Negi
From India, Delhi
Acknowledge(1)Amend(0)
Are the members replying to the thread having earlier processed the salaries or not? Please refrain from posting assumptions without knowing the facts, especially considering that many members are new and learning a lot here.
From India, Mumbai
Acknowledge(4)
Amend(0)
From India, Mumbai
Acknowledge(4)Amend(0)
Hi shenbagarajan, Different members gives different opinions on salary calculation and I got confused which is correct. Please kindly clarify me. thanks, Dhana
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Hi, In that Excel HRA 40% shows, its not acceptable 20% of gross only Allowed in HRA. Regards, Suresh Kumar M
From India, Coimbatore
Acknowledge(0)Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
Dear Dhana,
The salary is calculated as below:
Actual Salary = Gross Salary / No. of Days in the month * No. of days worked + Week - off
Gross salary = 100,000
So for 28 days, Actual Salary = 100,000 / 28 * 28 = 100,000
For 30 days, Actual Salary = 100,000 / 30 * 30 = 100,000
For 31 days, Actual Salary = 100,000 / 31 * 31 = 100,000
Attribution: https://www.citehr.com/432929-how-ca...#ixzz28ED3FY71.
From India, Mumbai
Acknowledge(0)Amend(0)
The salary is calculated as below:
Actual Salary = Gross Salary / No. of Days in the month * No. of days worked + Week - off
Gross salary = 100,000
So for 28 days, Actual Salary = 100,000 / 28 * 28 = 100,000
For 30 days, Actual Salary = 100,000 / 30 * 30 = 100,000
For 31 days, Actual Salary = 100,000 / 31 * 31 = 100,000
Attribution: https://www.citehr.com/432929-how-ca...#ixzz28ED3FY71.
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Shenbagarajan,
This is for your kind information. I have been working with a manufacturing company for the past year, and I am posting what I have worked on. Not only me, but everyone in the forum is posting their own experiences only. No one will post anything based on assumptions because we value this forum.
Hi Dhana,
There is nothing to be confused about in the discussion. What Veda Consultants said is right, and I am following the same procedure as well. Please tell me which short employees you have engaged. I will make it clearer for you.
From India, Coimbatore
Acknowledge(0)Amend(0)
This is for your kind information. I have been working with a manufacturing company for the past year, and I am posting what I have worked on. Not only me, but everyone in the forum is posting their own experiences only. No one will post anything based on assumptions because we value this forum.
Hi Dhana,
There is nothing to be confused about in the discussion. What Veda Consultants said is right, and I am following the same procedure as well. Please tell me which short employees you have engaged. I will make it clearer for you.
From India, Coimbatore
Acknowledge(0)Amend(0)
Dear Sir,
As per the Supreme Court of India ruling in the case of Guru Jambheshwar University through Registrar Vs. Respondent Dharam Pal, the calculation of salary under the Industrial Disputes Act, 1947 - Sections 2, 2A, 10(1) and 25F; Payment of Gratuity Act, 1987 - Sections 2, 4, 4(1), 4(2) and 4(3); Constitution of India - Articles 14, 16 and 136; Payment of Gratuity (Amendment) Act, 1987 states that the monthly wage or salary calculation should be based on 26 days only.
Regards,
Veda Team
VEDA Consultants
Dear Sir,
Could you please provide us with the copy(s) of the judgment given by the Hon'ble Supreme Court?
Regards,
Vijay Kumar
From India, Silvassa
Acknowledge(0)Amend(0)
As per the Supreme Court of India ruling in the case of Guru Jambheshwar University through Registrar Vs. Respondent Dharam Pal, the calculation of salary under the Industrial Disputes Act, 1947 - Sections 2, 2A, 10(1) and 25F; Payment of Gratuity Act, 1987 - Sections 2, 4, 4(1), 4(2) and 4(3); Constitution of India - Articles 14, 16 and 136; Payment of Gratuity (Amendment) Act, 1987 states that the monthly wage or salary calculation should be based on 26 days only.
Regards,
Veda Team
VEDA Consultants
Dear Sir,
Could you please provide us with the copy(s) of the judgment given by the Hon'ble Supreme Court?
Regards,
Vijay Kumar
From India, Silvassa
Acknowledge(0)Amend(0)
Dear Suresh,
The salary components are calculated as below:
Basic Salary = 50-60% of gross salary.
HRA = 40% in case of Non-metros and 50% in case of Metros (HRA is calculated based on Basic & also for tax exemption).
The rest will come as Special Allowances, TA - Rs. 800 (normally due to tax exemption), Adhoc allowances.
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
The salary components are calculated as below:
Basic Salary = 50-60% of gross salary.
HRA = 40% in case of Non-metros and 50% in case of Metros (HRA is calculated based on Basic & also for tax exemption).
The rest will come as Special Allowances, TA - Rs. 800 (normally due to tax exemption), Adhoc allowances.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply contains accurate information regarding the components of salary calculation such as Basic Salary, HRA, Special Allowances, and other allowances. (1 Acknowledge point)
0
0
Dear Brindha,
Thank you for your feedback.
Could you please explain how you would calculate the salary for an individual with a gross salary of Rs. 10,000/- who has 2 days of Leave Without Pay (LOP) in each month of February (28 days), March (31 days), and April (30 days)?
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
Thank you for your feedback.
Could you please explain how you would calculate the salary for an individual with a gross salary of Rs. 10,000/- who has 2 days of Leave Without Pay (LOP) in each month of February (28 days), March (31 days), and April (30 days)?
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The calculation for the salary of a person with a gross salary of Rs. 10,000 and 2 days LOP in February (28 days), March (31 days), and April (30 days) is: (10000/actual working days in the month) * (actual working days - LOP days). (1 Acknowledge point)
0
0
Dear Suresh,
We don't have a specific law stating the same, but this is followed mostly in all the companies. The tax exemption slab under various sections is also taken into account for the tax benefit of the employee, e.g., like Rs. 800 for TA and Rs. 1250 for medical are exempted from tax.
From India, Mumbai
Acknowledge(0)Amend(0)
We don't have a specific law stating the same, but this is followed mostly in all the companies. The tax exemption slab under various sections is also taken into account for the tax benefit of the employee, e.g., like Rs. 800 for TA and Rs. 1250 for medical are exempted from tax.
From India, Mumbai
Acknowledge(0)Amend(0)
Monthly wages = Gross Salary/ Total Days of Month* working day Daily wages = Gross Salary/26* working day
From India, Jaipur
Acknowledge(0)Amend(0)
From India, Jaipur
Acknowledge(0)Amend(0)
Dear Shenbagarajan,
You mentioned the following formula:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked + Week-off
Given that Gross salary = 100000, the calculations are as follows:
- For 28 days, Actual Salary = 100000 / 28 * 28 = 100000
- For 30 days, Actual Salary = 100000 / 30 * 30 = 100000
- For 31 days, Actual Salary = 100000 / 31 * 31 = 100000
However, what about the Week-off days?
In the scenario where 4 week-off days are included, such as in the month of August where one takes two days off, the calculation would be:
100000 / 31 * 29 = 93548.38
Regards,
Dhana
From India, Chennai
Acknowledge(0)Amend(0)
You mentioned the following formula:
Actual Salary = Gross Salary / No. of Days in the month * No of days worked + Week-off
Given that Gross salary = 100000, the calculations are as follows:
- For 28 days, Actual Salary = 100000 / 28 * 28 = 100000
- For 30 days, Actual Salary = 100000 / 30 * 30 = 100000
- For 31 days, Actual Salary = 100000 / 31 * 31 = 100000
However, what about the Week-off days?
In the scenario where 4 week-off days are included, such as in the month of August where one takes two days off, the calculation would be:
100000 / 31 * 29 = 93548.38
Regards,
Dhana
From India, Chennai
Acknowledge(0)Amend(0)
Dear Dhana,
Sundays are always a paid holiday for monthly salaried employees. If you have 2 days of leave (Only LOP), then it will be calculated as follows:
- Gross Salary = 100000/31 * 29 = 93548.40/-.
- In February (28 days), it will be calculated as Gross Salary = 100000/28 * 26 = 92857.10/-.
- In September (30 days), it will be calculated as Gross Salary = 100000/30 * 28 = 93333.30/-.
Moreover, based on this, all statutory payments like ESI/PF will be made. It's important to note that we only deduct the absent/LOP days from the total days in the month. However, for daily wages, the above calculations will not be applicable since the payment is based on the number of days worked.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Sundays are always a paid holiday for monthly salaried employees. If you have 2 days of leave (Only LOP), then it will be calculated as follows:
- Gross Salary = 100000/31 * 29 = 93548.40/-.
- In February (28 days), it will be calculated as Gross Salary = 100000/28 * 26 = 92857.10/-.
- In September (30 days), it will be calculated as Gross Salary = 100000/30 * 28 = 93333.30/-.
Moreover, based on this, all statutory payments like ESI/PF will be made. It's important to note that we only deduct the absent/LOP days from the total days in the month. However, for daily wages, the above calculations will not be applicable since the payment is based on the number of days worked.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Dhana,
You are confusing yourself. Please, for calculating the per-day salary for a month, skip the week offs.
Example 1: In February, there are 25 working days with a gross salary of 10000. If there are 2 days of leave without pay (LOP), then the earned salary is 9200.
Calculation: 10000 / 25 * number of days worked.
Example 2: In March, there are 27 working days. Calculate the salary as 10000 / 27 * number of days worked.
Example 3: In June, there are 26 working days. Calculate the salary as 10000 / 26 * number of days worked.
This is what we are following in our company.
From India, Coimbatore
Acknowledge(0)Amend(0)
You are confusing yourself. Please, for calculating the per-day salary for a month, skip the week offs.
Example 1: In February, there are 25 working days with a gross salary of 10000. If there are 2 days of leave without pay (LOP), then the earned salary is 9200.
Calculation: 10000 / 25 * number of days worked.
Example 2: In March, there are 27 working days. Calculate the salary as 10000 / 27 * number of days worked.
Example 3: In June, there are 26 working days. Calculate the salary as 10000 / 26 * number of days worked.
This is what we are following in our company.
From India, Coimbatore
Acknowledge(0)Amend(0)
Shenbagarajan is trying to explain the payroll in general. The others are posting what they are following blindly in their company.
@Sharmila, can you share the Excel sheet for February or March where the month days are not 30? Because in your sheet, it is for April where the calculation is easy. The issue at hand is for the above or below 30 days in a month.
From India, Hyderabad
Acknowledge(1)Amend(0)
@Sharmila, can you share the Excel sheet for February or March where the month days are not 30? Because in your sheet, it is for April where the calculation is easy. The issue at hand is for the above or below 30 days in a month.
From India, Hyderabad
Acknowledge(1)Amend(0)
Hi brindha, As per Mr.shenbagarajan, Actual Salary = Gross Salary / No. of Days in the month * No of days worked + Week -off which one is right? please guide me. thanks, dhana
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Dear Dhana,
Forget about weak offs at first point. Shenbagarajan's explanation is against only LOP or absences, whatever you consider for your understanding. Only the absent days are to be deducted from the month.
For example, if there are 2 absences (unpaid leaves) in March for a 10,000 salary employee, the actual paid amount would be calculated as 10,000/31*29. It is as simple as that - clearly deducting 2 absent days from the 31 days of the month.
From India, Hyderabad
Acknowledge(1)Amend(0)
Forget about weak offs at first point. Shenbagarajan's explanation is against only LOP or absences, whatever you consider for your understanding. Only the absent days are to be deducted from the month.
For example, if there are 2 absences (unpaid leaves) in March for a 10,000 salary employee, the actual paid amount would be calculated as 10,000/31*29. It is as simple as that - clearly deducting 2 absent days from the 31 days of the month.
From India, Hyderabad
Acknowledge(1)Amend(0)
Dear All, Hope this excel will help you out. check and revert. Not added the PF & ESI deduction. you just change the LOP the salary will be calculated automatically.
From India, Mumbai
Acknowledge(1)Amend(0)
From India, Mumbai
Acknowledge(1)Amend(0)From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[response] (1 Acknowledge point)
0
0
Hi santhosh, Thanks. So for example If A:March Month: 27 days working days. here 10000/27*no.of days worked 10000/27 *27=10000 370.37*27=9999.99=>10000 Am i Rite? thanks, santhosh
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Dear Sir/Madam,
I am working in a public motor transport company. We are following a 28/29/30/31-day calculation for scheduled employments, in respect of which the minimum rates of wages have been fixed for public motor transport workers at Rs. 4750 per month.
Please advise me on whether our current calculation method is correct or incorrect.
With warm regards,
Shobana
From India, Bangalore
Acknowledge(0)Amend(0)
I am working in a public motor transport company. We are following a 28/29/30/31-day calculation for scheduled employments, in respect of which the minimum rates of wages have been fixed for public motor transport workers at Rs. 4750 per month.
Please advise me on whether our current calculation method is correct or incorrect.
With warm regards,
Shobana
From India, Bangalore
Acknowledge(0)Amend(0)
Hi, calculating salary can be done in two ways:
1) gms / 30 (irrespective of the actual number of days in the month) X actual number of days payable,
2) gms / total number of days in the month X number of days payable.
You should follow one formula consistently. It may help to convince others. Normally, all companies use 30 days universally for all months. Auditors also accept this procedure. Otherwise, it may lead to incorrect calculations.
From India, Hyderabad
Acknowledge(0)Amend(0)
1) gms / 30 (irrespective of the actual number of days in the month) X actual number of days payable,
2) gms / total number of days in the month X number of days payable.
You should follow one formula consistently. It may help to convince others. Normally, all companies use 30 days universally for all months. Auditors also accept this procedure. Otherwise, it may lead to incorrect calculations.
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Santhosh,
Thanks.
So, for example, if A: March Month: 27 working days. Here, 10000/27 * number of days worked.
10000/27 * 27 = 10000
370.37 * 27 = 9999.99 => 10000
Am I right?
Thanks, Santhosh
No, the per day salary is important when there are LOPs or someone joined in the middle of the month. For that, the formula should be 10000/31 = 323 per day. Based on this, pay for the days or deduct for the days as applicable for the month.
From India, Hyderabad
Acknowledge(0)Amend(0)
Thanks.
So, for example, if A: March Month: 27 working days. Here, 10000/27 * number of days worked.
10000/27 * 27 = 10000
370.37 * 27 = 9999.99 => 10000
Am I right?
Thanks, Santhosh
No, the per day salary is important when there are LOPs or someone joined in the middle of the month. For that, the formula should be 10000/31 = 323 per day. Based on this, pay for the days or deduct for the days as applicable for the month.
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Shobana,
The minimum wage rate of the respective state is calculated only for 26 days, and you cannot apply it for 28/29/30/31 days. If you want, you can show your Basic + DA salary as the minimum wage and consider HRA and other allowances for calculating the gross salary. Attached is the Karnataka Minimum Wages for your reference. Please calculate based on 26 days and not for 28/29/30/31 days.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
The minimum wage rate of the respective state is calculated only for 26 days, and you cannot apply it for 28/29/30/31 days. If you want, you can show your Basic + DA salary as the minimum wage and consider HRA and other allowances for calculating the gross salary. Attached is the Karnataka Minimum Wages for your reference. Please calculate based on 26 days and not for 28/29/30/31 days.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
If an employee is joined on 17 Mar with a salary of 10000/Month how much you pay. Here the employee paydays are 15/31
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
No Dhana, It depends on company to company. All the company’s will not follow the same way. But calculating as per month days (28,29,30,31) is generally accepted anywhere and is appropriate.
From India, Hyderabad
Acknowledge(0)Amend(0)
0
0
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[response] (1 Acknowledge point)
0
0
30 days calculation in all the 12 months in a year is the best practice. For managers and above cadre, no rules will be applicable. As one respected member said, 26 days calculation is the base for all workmen-related settlements. The basic logic behind the 26 days calculation by the government rules is that it covers the paid weekly off.
From India
Acknowledge(0)Amend(0)
From India
Acknowledge(0)Amend(0)
I have gone through this pitched battle of views on the issue of whether a month shall be construed as 28 days, 30 days, or 31 days. Thanks to Ms. Ghr for kicking off an intense debate on a seemingly simple but truly intriguing issue. No doubt, as a member correctly said, nobody has put forward their views based on assumptions, but only on the practice followed in their respective companies. Nobody has, however, provided any legal basis in support of their views. Following different yardsticks for a month to arrive at a day's wage has its own merits and demerits, especially when wages are to be deducted for absence or loss of pay since every penny, as Mr. Shenbagarajan said, matters to an employee.
For example, the employer will be deducting more wages for loss of pay in February but a lesser amount in April, and even less in May since the calculation of a day's wages varies according to the number of days in a month. This, in my view, may not be a prudent method, particularly as it may create a more anomalous situation in complying with legal requirements like calculating retrenchment compensation.
Section 25-F of the Industrial Disputes Act provides for the calculation of retrenchment compensation at 15 days' wages for each completed year of service. There were divergent methods adopted by employers to calculate the compensation. Some followed 26 days, while others followed 30 days, and yet others followed the number of days in the month in which the employee was retrenched. This gave rise to different figures as compensation. This lack of uniform practice led to industrial disputes on how a month is to be construed for the purpose of arriving at 15 days' wages. Setting to rest the conflicting views on the issue, the Supreme Court in Guru Jambeshwar University through Registrar V. Dharam Pal 2007 I LLJ 1006, has laid down that the compensation has to be calculated on the basis of one month, meaning 30 days but not 26 days. This method can be adopted to bring uniformity and also as a salary for a month is constant and does not vary with the number of days in a month, so also the divider shall be constant for arithmetical accuracy. The formula of 26 days as adopted in the Gratuity Act cannot be made applicable here since the Gratuity Act has specifically prescribed it for calculating gratuity only, being a retiral benefit but not for every kind of benefit.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(3)
Amend(0)
For example, the employer will be deducting more wages for loss of pay in February but a lesser amount in April, and even less in May since the calculation of a day's wages varies according to the number of days in a month. This, in my view, may not be a prudent method, particularly as it may create a more anomalous situation in complying with legal requirements like calculating retrenchment compensation.
Section 25-F of the Industrial Disputes Act provides for the calculation of retrenchment compensation at 15 days' wages for each completed year of service. There were divergent methods adopted by employers to calculate the compensation. Some followed 26 days, while others followed 30 days, and yet others followed the number of days in the month in which the employee was retrenched. This gave rise to different figures as compensation. This lack of uniform practice led to industrial disputes on how a month is to be construed for the purpose of arriving at 15 days' wages. Setting to rest the conflicting views on the issue, the Supreme Court in Guru Jambeshwar University through Registrar V. Dharam Pal 2007 I LLJ 1006, has laid down that the compensation has to be calculated on the basis of one month, meaning 30 days but not 26 days. This method can be adopted to bring uniformity and also as a salary for a month is constant and does not vary with the number of days in a month, so also the divider shall be constant for arithmetical accuracy. The formula of 26 days as adopted in the Gratuity Act cannot be made applicable here since the Gratuity Act has specifically prescribed it for calculating gratuity only, being a retiral benefit but not for every kind of benefit.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(3)Amend(0)
If 1000 GS as per no.of Days in Aug.* Total Paid days and if GS is 30000/- then perday Salary in August is Rs.967.74 coz its 31 day\'s in mnth
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear member,
The formula given by everybody is different because everyone practices as per the organization policies. However, there is no clarity in labor laws about the payment of salaries when there is an LOP.
The best practice would be to keep a common figure for all the months. This will not only avoid variable calculations for every month but it will also be easy to explain and maintain. So the best option is that the month is considered as 30 irrespective of the actual number of days in the month.
Regards,
Preetam Deshpande
From India, Mumbai
Acknowledge(0)Amend(0)
The formula given by everybody is different because everyone practices as per the organization policies. However, there is no clarity in labor laws about the payment of salaries when there is an LOP.
The best practice would be to keep a common figure for all the months. This will not only avoid variable calculations for every month but it will also be easy to explain and maintain. So the best option is that the month is considered as 30 irrespective of the actual number of days in the month.
Regards,
Preetam Deshpande
From India, Mumbai
Acknowledge(0)Amend(0)
In this thread, people are mixing two distinct points - one day salary for gratuity calculations and one day salary for monthly computation. Calculations are different for both. For gratuity calculations, 30 days are taken as standard. However, for monthly salary calculations, the number of days of the month is to be taken, i.e., 28, 29, 30, or 31.
Here is a scenario that should make it clear for the readers: Monthly salary 100,000, number of days in August - 31. Some said it should be taken as 30 days standard. If, for example, an employee has taken 2 days of unpaid leave, should his present days be treated as 28 days or 29 days? Should we deduct the absent days and pay for the present or vice versa?
If we say that he should be paid by present days, which is 100,000 / 30 * 29 = 96,666, and deduction for 2 days would be 100,000 / 30 * 2 = 6,666. Here, the total monthly salary works out to 103,332. It is obvious that the calculations are wrong somewhere.
Whereas if calculated
From United Arab Emirates, Dubai
Acknowledge(0)Amend(0)
Here is a scenario that should make it clear for the readers: Monthly salary 100,000, number of days in August - 31. Some said it should be taken as 30 days standard. If, for example, an employee has taken 2 days of unpaid leave, should his present days be treated as 28 days or 29 days? Should we deduct the absent days and pay for the present or vice versa?
If we say that he should be paid by present days, which is 100,000 / 30 * 29 = 96,666, and deduction for 2 days would be 100,000 / 30 * 2 = 6,666. Here, the total monthly salary works out to 103,332. It is obvious that the calculations are wrong somewhere.
Whereas if calculated
From United Arab Emirates, Dubai
Acknowledge(0)Amend(0)
I've been working in Payroll for more than 4 years now and have worked for different companies in the Payroll department. I'm sure that after my post, there will be a chain of responses saying we calculate it in a different way and many more explanations. However, just above this, there is a post that was explained by myself and other members of the forum.
Per day salary is different from per day wage. Salary should always be calculated based on the number of days for that particular month. Some say 30 days is standard to avoid confusion. It is easy if we know how the calculations are done and can clarify any confusion.
Regards,
From India, Hyderabad
Acknowledge(0)Amend(0)
Per day salary is different from per day wage. Salary should always be calculated based on the number of days for that particular month. Some say 30 days is standard to avoid confusion. It is easy if we know how the calculations are done and can clarify any confusion.
Regards,
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear All,
Please try to avoid following what you follow because where I am presently working is also following a different format. It is important to adjust to the payroll method the company is following. When calculating per day salary, it should always be based on the number of days, i.e., 28, 29, 30, or 31 for exact payments/deductions.
Please continue to follow your company process but do not force other members to believe that this is the correct method just because you are following it.
Regards,
From India, Hyderabad
Acknowledge(0)Amend(0)
Please try to avoid following what you follow because where I am presently working is also following a different format. It is important to adjust to the payroll method the company is following. When calculating per day salary, it should always be based on the number of days, i.e., 28, 29, 30, or 31 for exact payments/deductions.
Please continue to follow your company process but do not force other members to believe that this is the correct method just because you are following it.
Regards,
From India, Hyderabad
Acknowledge(0)Amend(0)
HI, I have a joined a Co on 08.05.2013 and the No of working days in teh month of May '13 is 31 days how much salary should i get?????? rangarajan
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Guys, please tell me if I am wrong.
In my previous company, the salary was calculated as follows:
Gross Salary Per Month is 25000.
Number of days worked: 20 days.
Gross salary * 12 months of the year / 365 days.
25000 * 12 / 365 = 821.91 per day.
Per day salary * number of days worked.
821.91 * 20 = 16438.36 Salary for the month.
From India, Ahmedabad
Acknowledge(0)Amend(0)
0
0
In my previous company, the salary was calculated as follows:
Gross Salary Per Month is 25000.
Number of days worked: 20 days.
Gross salary * 12 months of the year / 365 days.
25000 * 12 / 365 = 821.91 per day.
Per day salary * number of days worked.
821.91 * 20 = 16438.36 Salary for the month.
From India, Ahmedabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The calculation provided is correct for determining the daily salary based on the monthly salary and number of days worked. (1 Acknowledge point)
0
0
Dear Sir/Madam,
As per the practice and statutory obligations in various laws, if we need to calculate the daily wage for an employee: Monthly gross salary divided by 26 days equals the daily wage because the weekly off should be paid by the employer.
For monthly wage/salary calculation purposes, managements have to adapt any one standard method, i.e., taking 30 days as uniform for all 12 months in a year. Alternatively, actual days, i.e., 28, 29, 30, or 31 days, as per the particular month.
Please provide further clarification on this topic, members.
From India
Acknowledge(0)Amend(0)
As per the practice and statutory obligations in various laws, if we need to calculate the daily wage for an employee: Monthly gross salary divided by 26 days equals the daily wage because the weekly off should be paid by the employer.
For monthly wage/salary calculation purposes, managements have to adapt any one standard method, i.e., taking 30 days as uniform for all 12 months in a year. Alternatively, actual days, i.e., 28, 29, 30, or 31 days, as per the particular month.
Please provide further clarification on this topic, members.
From India
Acknowledge(0)Amend(0)
Hi All,
Thank you for the information. I discussed this matter with my manager, but he is not ready to agree on this. Could you please provide any kind of valid document that I can show to my senior as proof?
Thanks, Sushmita Paul
From India, Bangalore
Acknowledge(0)Amend(0)
Thank you for the information. I discussed this matter with my manager, but he is not ready to agree on this. Could you please provide any kind of valid document that I can show to my senior as proof?
Thanks, Sushmita Paul
From India, Bangalore
Acknowledge(0)Amend(0)
The above calculation seems to be wrong. If the Employee is joining on the 13th of August, then the Gross salary will be 19 * 806 = Rs. 15,322/- NOT Rs. 15,314/-. Please correct it.
Sarvesh
From India, Mumbai
Acknowledge(0)Amend(0)
Sarvesh
From India, Mumbai
Acknowledge(0)Amend(0)
Since days of months are not equal , so I think it would be better if we calculation be like this = 25000 (salary) X 12 (year months) / 365( year days ) = 822 (salary per day)
From Saudi Arabia, Jeddah
Acknowledge(0)Amend(0)
From Saudi Arabia, Jeddah
Acknowledge(0)Amend(0)
Dear All,
Could someone please try to resolve this issue? Let's clear up any misunderstandings regarding the number of days. I kindly request senior members to provide the exact calculation. Please.
Regards,
Bittu (Nagpur)
From India, Nagpur
Acknowledge(0)Amend(0)
0
0
Could someone please try to resolve this issue? Let's clear up any misunderstandings regarding the number of days. I kindly request senior members to provide the exact calculation. Please.
Regards,
Bittu (Nagpur)
From India, Nagpur
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The correct calculation for the number of working days based on Indian labor law is (100000/31)*(31-13+1). This formula takes into account the specific dates and gross salary provided. (1 Acknowledge point)
0
0
Hi! Please let me know, with salary structure, if the gross salary is 28000 per month, what amount would get deducted from the employee & employer? And how much amount would be in the PF account from June 2014 to April 2016.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear All Concerned,
The standard 30-day practice is followed by most old companies. I think it is a good procedure. The 26-day calculation is used to arrive at daily wage payments (including payment for weekly offs) as per the law mentioned by our friend VEDA. For the payment of Gratuity and other statutory payments, it is necessary to calculate the monthly salary divided by 26 days only. Even the minimum wage rules need to be followed to determine daily wages by dividing by 26 days.
In any case, we need to seek final clarification from fellow experts in this matter.
From India
Acknowledge(0)Amend(0)
The standard 30-day practice is followed by most old companies. I think it is a good procedure. The 26-day calculation is used to arrive at daily wage payments (including payment for weekly offs) as per the law mentioned by our friend VEDA. For the payment of Gratuity and other statutory payments, it is necessary to calculate the monthly salary divided by 26 days only. Even the minimum wage rules need to be followed to determine daily wages by dividing by 26 days.
In any case, we need to seek final clarification from fellow experts in this matter.
From India
Acknowledge(0)Amend(0)
Dear Bhargavi,
I have gone through your discussion, and I am not satisfied with it. There is a difference in the amount when calculating for 30 days versus 31 days.
For example, if it's the 30th day, and Mr. Xyz has a salary of Rs. 10,000 per month, then per day it comes to Rs. 333. If he worked for 29 days with 1 day of Loss of Pay (LOP), the amount would be Rs. 9666 (10,000/30 * 29 days).
On the other hand, if it's the 31st day, then per day it's Rs. 322. Calculating the same 1 day LOP with 30 days worked, the total amount for 30 days would be Rs. 9677 (10,000/31 * 30 days).
Therefore, if we consider a standard calculation of 30 days every month, there is a loss for the employee. This is my point of view, and I need proper clarification on it.
Regards,
Ami
From India, Bengaluru
Acknowledge(0)Amend(0)
I have gone through your discussion, and I am not satisfied with it. There is a difference in the amount when calculating for 30 days versus 31 days.
For example, if it's the 30th day, and Mr. Xyz has a salary of Rs. 10,000 per month, then per day it comes to Rs. 333. If he worked for 29 days with 1 day of Loss of Pay (LOP), the amount would be Rs. 9666 (10,000/30 * 29 days).
On the other hand, if it's the 31st day, then per day it's Rs. 322. Calculating the same 1 day LOP with 30 days worked, the total amount for 30 days would be Rs. 9677 (10,000/31 * 30 days).
Therefore, if we consider a standard calculation of 30 days every month, there is a loss for the employee. This is my point of view, and I need proper clarification on it.
Regards,
Ami
From India, Bengaluru
Acknowledge(0)Amend(0)
I've gone through the thread discussion, but I've not been able to resolve my issue. I have a staff member who joined on the 5th of February. When counting working days, do I count 28 minus 4 days, or do I count the number of days present, i.e., 6 days a week, which equals 21 days?
From India, Panjim
Acknowledge(0)Amend(0)
From India, Panjim
Acknowledge(0)Amend(0)
How can be calculate 70% salary of an employee for a day only.
From India, Indore
Acknowledge(0)Amend(0)
From India, Indore
Acknowledge(0)Amend(0)
Dear All If Gorss Salary - 13600/- Per months Earning Gross In months - 4533 /- How to Calculate Day - ?
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Hello there,
In our company, we calculate salary based on the number of days in a month - 28, 30, or 31, depending on the specific month.
Let's say an employee's salary is 30,000 per month, and the salary month is June (30 days), with the employee working without taking any leave for that month (excluding Sundays and public holidays).
The final salary calculation would be: (30000/30) * No. of working days.
For instance, in June, there are 5 Sundays and 1 public holiday. The question arises: Should we include Sundays and other public holidays in the "No. of working days," or exclude them from the total number of days (30 days)?
So, is the No. of working days equal to 30, or should it be 24?
Final salary calculation options:
- (30000/30) * 30
- (30000/30) * 24
Could you please clarify this matter?
Thanks in advance :)
From India, undefined
Acknowledge(1)Amend(0)
In our company, we calculate salary based on the number of days in a month - 28, 30, or 31, depending on the specific month.
Let's say an employee's salary is 30,000 per month, and the salary month is June (30 days), with the employee working without taking any leave for that month (excluding Sundays and public holidays).
The final salary calculation would be: (30000/30) * No. of working days.
For instance, in June, there are 5 Sundays and 1 public holiday. The question arises: Should we include Sundays and other public holidays in the "No. of working days," or exclude them from the total number of days (30 days)?
So, is the No. of working days equal to 30, or should it be 24?
Final salary calculation options:
- (30000/30) * 30
- (30000/30) * 24
Could you please clarify this matter?
Thanks in advance :)
From India, undefined
Acknowledge(1)Amend(0)
Why is there confusion here? Please follow standard practice.
Fixed gross salary:
For 31 Jan, Mar, May, July, Aug, Oct, Dec Months (100000 x 31 = 3225.806452) * Number of Payable days.
For April, June, Sep, Nov (100000 x 30 = 3333.333) * Number of Payable days.
For Feb (100000 x 29 = 3448.275862) * Number of Payable days (100000 x 28 = 3571.428571) * Number of Payable days.
Now, the per day amount is calculated, and it should be multiplied by the number of payable days.
Thanks
From India, Chennai
Acknowledge(0)Amend(0)
Fixed gross salary:
For 31 Jan, Mar, May, July, Aug, Oct, Dec Months (100000 x 31 = 3225.806452) * Number of Payable days.
For April, June, Sep, Nov (100000 x 30 = 3333.333) * Number of Payable days.
For Feb (100000 x 29 = 3448.275862) * Number of Payable days (100000 x 28 = 3571.428571) * Number of Payable days.
Now, the per day amount is calculated, and it should be multiplied by the number of payable days.
Thanks
From India, Chennai
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
31 May Anti Smoking day.ppt
SALARY SHEET CALCULATION.xls
CiteHR.AI
(Fact Checked)-The correct calculation for daily salary should be (Gross salary/total days in the month)*(days present). For August with 31 days, it should be (Gross salary/31)*28. (1 Acknowledge point)