Ashutosh Thakre
Hr Professional
Hr Manager
Project Manager
+1 Other

Thread Started by #scaleban.sameer

I need everyone's advise on the following query:
In our company, the rule for leave without pay is to deduct the salary per working day. For example, if the salary of an employee is Rs 26,000 pm (break up is BASIC-13000, DA-4500, CONVEYANCE ALLOWANCE-1600, HRA-4000, MEDICAL ALLOWANCE-1300 AND SPECIAL ALLOWANCE-1600) and the total days in a month are 30 - if the employee takes Leave without pay for 3 days, 3 x 26,000/30 = 2,600 would be deducted. So i want the full break of the salary? Is there any formula? Basically I want to create salary slip. Please help
Thanks and await your response urgently
13th August 2017 From India, Indore
The deduction will be for all the components. So all the components, will be divided by the no of days for that month and the salary will be calculated. No directly on the gross. So accordingly the deductions will also vary.
Also, the salary slip will show the present days, leave days and absent days. These total should be more than the no. of days for that month.
14th August 2017 From India, Mumbai
Hi ,
The attached file will assist you with your query .
14th August 2017 From India, Mumbai

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File Type: xls Salary Example.xls (37.0 KB, 1732 views)

all the components will be processed on pro-rata basis. As statutory calculations are done on basic and Gross, hence statutory will be processed for 27 days only.
14th August 2017 From India, New Delhi
@SHWETANAIR.11 Thanx for the help. There was one more thing i needed to know if there is a professional tax deduction of Rs 208 than how will the calculation be done. I mean to say that is first professional tax will be deducted from the total salary and after that deduction will be for all the components percentage wise or vice versa. Please reply urgent.
16th August 2017 From India, Indore
Dear all,
In the payment slip there should not be any deduction of unpaid days. You have only to pay him on attended days plus weekly off etc. Secondly, profession tax slab is on gross salary earned and not on any deduction. Hence, do not show any deduction of unpaid days but pay according to actual paid days.
16th August 2017 From India, Pune
You first need to arrive at the gross salary payable of the month. ( Gross salary is before any deductions)
Professional Tax deduction is basis gross salary slabs.
Then as per the gross salary you need to determine what Professional tax you will deduct.The same will differ for other states.
In my example I have shown the same for Mumbai Location. ( Gross Salary above Rs 10000/ has Professional Tax as 200)
So instead of Rs 200, you need to show the amount which is for your state.
Pls note than any deduction be it Professional Tax, PF , ESIC , TDS or any other deduction will always be done after we compute the gross salary of the employee basis payable days.
16th August 2017 From India, Mumbai
Dear all,
From the query of sameer I understand that he wants to pay him full and show a deduction of 2600 which is wrong. He need to pay for 27 days and accordingly make all statutory deductions.
16th August 2017 From India, Pune
How much should the medical allowance should be ? what are the breakups for medical allowances?
and is there any basic formula for HRA? i.e it should be 40% or 50% of Basic?
pl do let me know if there is anything like that.
1st October 2017 From India, Vadodara
@shweta - In this case , how the tax calculation (TDS) will be done for this employee, who has been paid for only 26 days? Do we need to deduct TDS basis his gross salary or the net amount credited in his account (ie after adusting salary for absent days). Please advise.
15th November 2017 From India, Pune
TDS is deducted every month. However it is not based on the attendance of every month.
The below is just a brief on how tax is calculated. Pl consult a tax expert for detailed explanation.
At the beginning of financial year (Apr) or the employee joining date whichever is applicable, the employee gives his tax investment declarations to the company.
Then basis the below the payroll department determines the employee tax for the year as per the employee tax slab.
• employees annual gross salary
• tax rules pertaining to conveyance allowance , medical allowance
• Annual employee PF contribution
• Annual PT contribution
• Tax investments (as per eligibility under various tax sections 80C , 80 D, 80 DD etc)
The same amount is then divided among the 12 months and deducted accordingly in every month salary.
Then in Dec or Jan, the company asks the employee to give the actual investment proofs. Then basis the proofs and the TDS already deducted, the TDS for remaining months is reworked and accordingly deducted.
Also if an employee joins in middle of financial year (e.g Oct), then the new company asks the employee to provide details of TDS deducted in his previous company.
15th November 2017 From India, Mumbai
Thanks Shweta for the immediate response.
15th November 2017 From India, Pune
My company is Techpapa he is not pay me 2 months salary and when i ask him he gives me falls promise in every month and he not respond my mail, plz give me a suggestion how can i get my salary.
8th September 2018 From India, Noida
i want to know is bonus deducted form the salary part.
kamaljeet singh
6th February 2019 From India, Gurgaon
I want to know is bonus part deducted form salary.
Basic : 12000 Paid per month
HRA : 6000 Paid per month
Conv.Allow. : 800 Paid per month
Special Allowance : 8227 Paid per month
Gross Total (Per Month) : 27027
P.F. : 1440 Employer contribution
Bonus : 700 As per Bonus Act
Grand Total CTC PM : 29167
CTC Per Annum : 350004
6th February 2019 From India, Gurgaon
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