Bcarya
Assistant Manager - Hr
Gunjansingh_hr
Generalist Hr
Guptakmanish29
Hr Professional
Ambetkar.y
Asst. Manager Hr & Admin
+2 Others

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Dear Seniors,
Please let me know do we have any problem by crediting monthly salary only for 25 days?. we have planned to change the salary period 26th to 25th. so in the initial month we are supposed to do this. please advise me.

Dear Selvam,
You can change your Salary Period to 26th to next 25th. But, to change you system of payment you cannot pay 25 days salary to the employees. As per Labour Laws, an employee is get paid for working the whole month. The law do not bound for evaluation of month, but it should be for 30 / 31 days.
So, it is better to pay 5 days in advance to all the employees. By this, you will be able to easily change your system and you will also abide the law.
Hope this will help you. Cheers.

Dear Selvam,
Actually few things are not clear to me from your post.
But from you post in a glance I will like to advice you it's better to document the policy first.
Giving 25 days salary will not be an issue as per my view, as you all are starting a system and this will be only for first month but main problem is employees who will not get salary of one month (30 days). There 5 days salary will be less and for junior staff one day amount also matters.So, its always better to take the employees in confidence, tell them in advance so that after receiving salary there will be no hue and cry.
Hope few things will be clear to you.
.

Dear Mr. j thirumeni selvam
Good morning, you can maintain salary timings 26th to 25th of every month. But only thing is you have to give every month last 5 days salary as a prorate basis. If any body has joined or any body has left from the company you have calculate the attendance carefully, if any body has taken leave these last 5 days you have deduct the leaves next month. You have maintain leave track record carefully.
Regards,
Ambetkar

Dear Selvam,
I am agree with Mr. Bhuwan.Only thing want to add here is while calculating leaves on prodata you have to be very careful & maintain the records properly.
If your payroll is software based then IT person need to modify the programma in software. If you are maintaining it manually then every month you have to see the attendance. Specially when you have to do full & final of the employee, while calculating it, just keep the things in mind how manys days salary need to be paid. All the very best!!

salary period is your choice but make sure that wages must be paid with in 7 days of your month last date. Also there is one more issue you have to dealt with is esi and pf, govt. Authorities records month as from 1 to 30/31 and not acc to your salary month,
if you pay advance for rest of days , then u can pay salary by 7th of next month but you are also paying advance esi/pf and if anybody is on esi leave on those days, he will not get benefit from esi as there online records showing payment for those days by the co. but the fact is u will be deducting the same next month
beware of this issue as we are also currently dealing the same and now we are considering to get back to old full month salary
thnks
manish gupta

Dear Selvam,
May we know the objective of your proposal. More suggestions could come if we are made aware of the objective.
Was there a specific request from the employees or HR department wants to pay the employees in time.
As suggested by members there are many factors such as leave accounting, statutory compliance's, and the care you need to exercise while effecting Full and final settlements etc.,
M.V.Kannan

Dear All,
The objective of this is to credit the salary by the last working day of every month. also there should be some amount in the hands of the mgt. because then only the employees also will have some responsibilities while leaving the organization and if we make any changes during their employment. otherwise by the time they wish to leave the company, they will move out as their wish.
Thank you Seniors.
Regards
Selvam.

Dear Selvam,
Your objective to credit the salary on the last working day of the month is fine. But your statement that the management must have some amount in the hands so that the employees do not quit as they wish can always be addressed in the following manner.
You can still credit the salary of employees on or before the 05th of every month and have a hold on the wages of 5 days 01st to 05th of the month.
In addition to this you have payments such as leave encashment/ LTA if applicable/ Medical reimbursement if applicable in the hands of the management and these can always be adjusted against notice pay if employees quit the organisation. But it all depends on the salary structure and the notice period. The higher the wages and the longer the notice period, the possibility of recovery diminishes.
In my opinion you may be increasing your workload by keeping track of the last 5 working days of the month.
Regards
M.V.Kannan

give them full 30 days salary ....i.e 5 days salary in advance....you can adjust their leave during these 5 days period with the salary of next month....

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