Bharghavi.D
Hr Assistant
Vedalcm
Corporate Legal Counsel
Karthik Nayudu
Regional Manager - Hr
Lakshmi87*
Agm - Hro, Compensation & Benefit Mgt,
Ms.ghr
Freelance Recruiter/consultant
Vltreddy999
Hr , Ir And Legal Matters
Vijay_nainy19
Manager Hr & Admin
Santhosh Srivatsav
Hr Personnel
Bittu777
Hr Professional
Vinodsomal
Hr & Admin Manager
Dinesh3p2
Vertical Head
Sushmita1986
Functional Consultant
Al Hadi Yusuf
Accounting Manager
Trulydez
Trainer
+9 Others

Thread Started by #ms.ghr

Dear Professionals,
As per Indian labour law, what is the legal way of calculating per day salary of employees:
Gross salary: 100000 per month
No of days in a month :31 eg for august month
Date of joining:13 aug 12
Question/Confusion: No of working days - - (100000/31)*(31-13+1)
or
No of Working days - - (100000/30)*(30-13+1)
Regards
1st October 2012 From India, Delhi
Hi
It's Gross Salary / No. Of days in that Month * Total Paid Days.
If Gross salary is 25000/- then Per day salary for August is Rs.806.
If Employee is joining on 13th Augu then Gross salary will be 19*806=Rs.15314/-
Regards
Karthik
1st October 2012 From India, Vijayawada
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 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)
Please check the below link for more information on the same:
https://www.citehr.com/430332-how-calculate-salary.html
1st October 2012 From India, Visakhapatnam
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 as 30 days only.
Therefore, the standard formula stands this way for calculating salary:
Gross salary/30 days * No. of working days
Regards,
Bharghavi
1st October 2012 From India, Bangalore
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 = 100000
So for 28 days, Actual Salary = 100000 / 28 * 28 = 100000, His 1 day salary is 3571/-
For 30 days, Actual Salary = 100000/ 30 * 30 = 100000, His 1 day salary is 3333/-
For 31 days, Actual Salary = 100000 / 31 * 31 = 100000, His 1 day salary is 3225/-
So as per your query the employee has joined on 13-Aug-2012, so he has worked for 19 days in the month.
So the gross salary = 100000/31 * 19 = 61290. His 1 day salary is 3225.80/-
1st October 2012 From India, Mumbai
Dear Sharmila,
you said that standard working days should be considered as 30 days in a month irrespective of28/29/30/31
but suppose if the salary is to be calculated for august month(for example-no of days-31 in that month)
in such a case whether we have to consider 30 days a standard working days for calculating or 31 days to be taken for calculation(Gross salary/total of days in that month *no of days present)5000/31*28=Rs.4516.66)
or 5000/30*28=Rs.4666.66
Pls clarify me
thanks,
dhana
2nd October 2012 From India, Chennai
Dear Dhana,
If your gross salary is fixed for Rs. 30,000/= p.m. (For example)
It doesnot mean that your 1 day salary is Rs.1000/-
In such a case, you need to get only Rs. 28000/- in the month of February and you need to get Rs. 31000/- in the month of August
But, in practice, this is not the case... even though February has 28 days & August has 31 days, you still get Rs. 30000/- as your salary...
Therefore, the standard of 30 days is to be considered.
Hope you got your clarifications.
Regards,
Bharghavi
3rd October 2012 From India, Bangalore
As per the Supreme Cour of India by Guru Jambheshwar University through Registrar Vs. Respondent: Dharam Pal case, Salary calculation as under 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, monthly wage or salary calculation shall be 26 days only.
Regards
Veda Team
VEDA Consultants
3rd October 2012 From India, Madras
Dear Vedal,
The calculation is only for gratuity and not to calculate monthly salary of the employee. Also the 26 day salary will be calculated for daily wage worker and not for monthly salaried employees.
@ bhargavi,
you have rightly said the practice but 30 days standard is not considered for every month. it is based on the number of the days in the month.
3rd October 2012 From India, Mumbai
Dear Bhargavi,
Thanks for your information.You said that we should consider only 30 days as standard working days
irrespective of any month but Mr.shenbagarajan has specified that in practice 30 days standard working days is not considered.
Can you please tel me which is accountable?.30 or 31days
thanks
Dhana
3rd October 2012 From India, Chennai
Hi all,
What Veda Consultants said is right. the gross salary should be divided by 26 for calculating per day wages.
but in the case of gratuity we use to divide it by 30 days. in order to control 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 month, his salary will be 10000 +384.61. because we have to pay for August 15th.
Bt in other cases if he worked for 27 days his salary will be 10000 only.
In feb he is supposed to work for 24 days oly, bt he shld be paid with the whole salary 10000. no queries in that.
3rd October 2012 From India, Coimbatore
Dear Dhana,
I still am not sure as to why there is such a bizzare in your mind. When you calculate the salary, it should be aways kept in mind that 30 days is the count for employees employed as per the Factories Act. In 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 is a clear-cut for your query.
3rd October 2012 From India, Visakhapatnam
Hi Sharmila,
For monthly salaried people we have to divide the gross salary by 26 days and for weekly waged employees we will fix their per day salary as per minimum wages act. so for them no need to divide. we have to just multiply the number of days they have worked with their per day salary.
this is the procedure we are following. we are one of a manufacturing company employing around 200 employees. we have faced many IF, PF & ESI inspections. they too didn't criticize on this procedure.
3rd October 2012 From India, Coimbatore
Dear Dhana, We follow 30 days as standard and we are practicing the same in our company Regards, Bharghavi
3rd October 2012 From India, Bangalore
Dear All,
Per day salary will always vary from month to month. Say for example, if your salary per month is 30,000/- then
for the month of Feb =30000/28,
means per day Salary in Feb = 1071
for the month of Mar = 30000/30
means per day Salary in Mar = 1000
for the month of Apr =30000/31,
means per day Salary in Apr = 968
Always keep in mind the per day salary only comes when we pay short in that particular month either in case of a new join or for LOP.
Regards,
3rd October 2012 From India, Hyderabad
Hi k_shenbagarajan,
As your reply,
How per day salary change Every month...as you said divided by 28/29/30/31 if that x person not worked for all Sunday so in that person getting salary is less then as fixed know...
kindly clarify me....
3rd October 2012 From India, Coimbatore
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,
3rd October 2012 From India, Coimbatore
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 weak off for monthly payments. Only Absents or Excess leaves as LOP will be deducted that to calculating the per day salary for that month.
Regards
3rd October 2012 From India, Hyderabad
Dear Brindha,
I'm not sure what your company follows and what aint they criticized about. 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 are counted to propotionate maneuver when calculating.
Most companies follow a methodically follow the 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? pls. justify!
3rd October 2012 From India, Visakhapatnam
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 every one is calculating for full attendance, if you have any LOP or absent only you will know the problem. It is not easy to solve the problem when a worker ask for the same because every rupee matters for him.
Let us consider an example.
If a person gross salary is Rs.10000/ -, He has got 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 every rupee counts for the employee.
3rd October 2012 From India, Mumbai
Hi Sharmila,
for a month there should be 4 days as week off.
so namely 4 sundays will not be considered for per day salary calculation.
hence the gross salary should be divided by 26 days oly not by 30 days.
3rd October 2012 From India, Coimbatore
Hi Brindha,
Kindly provide Example for following, as your experience.....
x salary is 12000;
Exp 1 : Sep month 24 days working 1 day LOP how much his salary;
Exp 2 : Sep month 27 days working including 3 Sunday & 1 LOP,
Exp 3 : Sep month 25 days working;
3rd October 2012 From India, Coimbatore
Dear Brindha,
Hope you are giving salary calculation for CL's. then your formula will be working out. It is calculated on daily wages.
Not for monthly salaried people where the Sundays are a paid holiday.
3rd October 2012 From India, Mumbai
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
3rd October 2012 From India, Secunderabad
I second, Mr. Shenbagarajan.
Dear ms.ghr, There has been a difference of opinion of call into your question. The best way which I found out as a solution to your query is use the following link for your monthly salary calculations.
Hope you may not have to visage on struggling what to do.
CiteHR attribution:
3rd October 2012 From India, Visakhapatnam

Attached Files
Membership is required for download. Create An Account First
File Type: xls Automated Salary Calculator.xls (74.0 KB, 1498 views)

Hi Suresh,
Plz be clear that for staffs who are working on monthly basis, you cant consider their working on sundays. so u no need to pay for that. they are showing their own interest in completing their task. for that you can give compensatory off on some other days.
Bt in case of workers receiving per day wages & weekly basis you can pay for 26 days normal pay. i.e their per day wage will be 461.53. bt for sundays you ve to pay overtime wages which is double the per day wage.
So for Exp 1: the pay will be 11520
Exp 2 & 3: the pay will be 12000 in case of Company staff
Exp 2: in case of workers the pay will be 14880
So the per day wages will be calculated as per the number of working days of that particular month.
or else you can use the following formula irrespective of any month.
(Gross Salary*12)/309 days = per day wages


This is wat i am following.
3rd October 2012 From India, Coimbatore
Dear Concern,
As per Indian Law if any of the candidate is joining mid of month then the salary would calculate on the basis of days not month.
i.e. if you join on 15 & month is of 31 days then your salary would be cal. 16 days
2. If you join on 1st then you salary would be cal on month wise i.e. 30 days.
Thanks & Regards,
Rajesh negi
3rd October 2012 From India, Delhi
Are the member replying to the thread have earlier processed the salaries or not. Without knowing please don't post anything by assumptions since many of the members are new and learning a lot here.
3rd October 2012 From India, Mumbai
Hi shenbagarajan, Different members gives different opinions on salary calculation and I got confused which is correct. Please kindly clarify me. thanks, Dhana
3rd October 2012 From India, Chennai
Hi, In that Excel HRA 40% shows, its not acceptable 20% of gross only Allowed in HRA. Regards, Suresh Kumar M
3rd October 2012 From India, Coimbatore
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 = 100000
So 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,
Attribution: https://www.citehr.com/432929-how-ca...#ixzz28ED3FY71.
3rd October 2012 From India, Mumbai
Hi shenbagarajan,
this is for ur kind information. I have been working with a manufacturing company for the past 1 year & i am posting wat i ve worked out. and nt oly me, every1 in the forum are posting their own experience oly. no one will post anything on their assumption. because we know the value of this forum.
Hi Dhana,
There is nothing to get confused in the discussion. wat veda consultants said is rite. and me too following the same procedure.
Plz tel me what short employees you ve engaged. i l make you stil clear.
3rd October 2012 From India, Coimbatore
Dear Sir,
Can U please provide us the copy(s) of the judgement given by the Hon'ble Supreme Court.
Regards,
Vijay Kumar
3rd October 2012 From India, Silvassa
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).
Rest other will comes as Special Allowances, TA - Rs. 800(Normally due to tax exemption), Adhoc allowances.
3rd October 2012 From India, Mumbai
Dear brindha,
Thanks for your feedback.
Ok can you pls explain how you would calculate the salary for a person gross salary of Rs.10000/- who has 2 days LOP in each month of February 28 days, March 31 days and April 30 days.
3rd October 2012 From India, Mumbai
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. eg. Like Rs. 800/- for TA and Rs.1250 for medical are exempted from tax.
3rd October 2012 From India, Mumbai
Monthly wages = Gross Salary/ Total Days of Month* working day Daily wages = Gross Salary/26* working day
3rd October 2012 From India, Jaipur
Dear Shenbagarajan,
You said this
Actual Salary = Gross Salary / No. of Days in the month * No of days worked + Week -off
Gross salary = 100000
So 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,
What about the Week-off?
In the above case have you included 4 week off days
For example in the month of august one take two days leave
how will we have to calculate
100000/31*29=93548.38
regards,
dhana
3rd October 2012 From India, Chennai
Dear Dhana,
Sundays are always paid holiday for monthly salaried employee.
If you have 2 days 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 only all statutory payments like ESI / PF will be made.
Here remember we only deduct only the absent / LOP days from the days in the month.
But for daily wages the above will not be applicable since he will be paid only for the days he has worked.
3rd October 2012 From India, Mumbai
Hi Dhana,
You are confusing yourself. plz for calculating per day salary for a month, skip off the week offs.
E.g 1: Feb month: 25 days working days. gross salary 10000. 2 lop. then their earned salary is 9200
10000/25*no.of days worked.
E.G 2: March Month: 27 days working days. here 10000/27*no.of days worked
E.G 3: June Month: 26 Days Working days. here 10000/26* No. of days worked.
this is wat v are following in our company.
3rd October 2012 From India, Coimbatore
Shenbagarajan is trying to explain the payroll in general. the others are posting what they are following blindly in their company.
@Sharmila, can u share the excel sheet for Feb or Mar where the month days are not 30. Bcoz in your sheet it is for Apr where the calculation is easy. the issue going on is for the above or below 30days in a month.
3rd October 2012 From India, Hyderabad
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
3rd October 2012 From India, Chennai
Dear Dhana,
forget about weak offs at first point. Shenbagarajan's explanation is against to only LOP or absent whatever you take for your understanding. only the absent days are to be deducted from the month.
Say 2 absents(unpaid leaves) in march for 10000 salary employee
the actual paid is 10000/31*29. as simple as it is. clearly deducting 2 absent days from 31days of the month.
3rd October 2012 From India, Hyderabad
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.
3rd October 2012 From India, Mumbai

Attached Files
Membership is required for download. Create An Account First
File Type: xls Salary sheet.xls (33.0 KB, 333 views)

The attached by Shenbagarajan is generally accepted anywhere.
Else the companies are following differently from the beginning and the people joined after are simply following the previous sheet without knowing the actual process.
3rd October 2012 From India, Hyderabad
It is as per the IT rules, the same can be read in Tax laws.
Basic = As defined by the company
HRA = 40% or 50% of basic (non metros and metros respectively)
Transport Allowance = 800 per month
Medical Allownace - 1250 per month (Medical should be submitted else taxable component)
remaining can be shown as other allowance/book allowance/special allowance/ executive allowance whatever you call it as a taxable component.
3rd October 2012 From India, Hyderabad
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
3rd October 2012 From India, Chennai
Dear Sir / Madam,
I am working in public motor transport company.we are following 28/29/30/31 days caluclation. scheduled employments in respect of which minimum rates of wages have been fixed for public motor transport worker is Rs.4750/ per month.
Please advice me what we are caluclating is correct or wrong
With Warm regards
Shobana
3rd October 2012 From India, Bangalore
Hi
calculating salary can be done in two ways
1) gms / 30 (irrespective of actual no of days in the month)X acutal no of days payable,
2) gms / total no of days in the month X no of days payable
you should follow one formule forever. it may help to convince others. Normally, all companies follow 30 days commonly for all the months. Auditors also accept this procedure. otherwise it may lead to wrong calcuation.
3rd October 2012 From India, Hyderabad
No.
Per day salary is important when there are LOP's or someone joined in mid of the month. for that the formula should be 10000/31=323 perday. on this now pay for the days or deduct for the days as applicable for the month.
3rd October 2012 From India, Hyderabad

Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information and resources for business and professional growth. Register Here
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™