Saswatabanerjee
Partner - Risk Management
Jkct15
Deputy Manager - Hr
+1 Other

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Hi,
Is this legal to calculate salary from 20th of a month to 21st of next month and paid on 5th of next consecutive month, for instance, dec20th to jan21st calculated salary is paid on 5th of feb. I believe this is done to hold the employees from absconding after the salary date.
Kinldy suggest..
Regards,
Dpka

From India, Madras
Hi
The wage period can be fixed any day during the month, it could be 1st to 30th or 26th -25th or 15th-14th. But disbursement of salsry has a clause. That is
1. If below 1000 employee, the salary disbursement should be on or before 7th day from the expiry of wage period
2. If above 1000 employee, the salary disbursement should be on or before the 10th day from the expiry of wage period
You can refer the Payment of wages Act Section 5 for reference.


This matter has been discussed many times on CiteHR
Do a search on the matter and you will get the relevant threads
Christopher, the payment of wages act, factories act and other regulations specifically provide for payment of salary on calander month (or less period). you can not decide your own dates for the wage period. Many companies do pay salary based on attendance up to the 26th (or even 20th) but they do so assuming the employee will be present on all the remaining days. Where there is absence for subsequent period, they then adjust those days in the next month.

From India, Mumbai
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