In my organisation I have started salary calculation in 26 days. last month 1 employee joined on 22nd October, i have given him for 5 days salary, is it right or wrong?please give your opinion.
20th November 2018 From Bangladesh, Dhaka
Dear Ismail,
I am not aware what is the stipulations in Bangladesh in this regard. However in India, every employee is paid salary for every day when he/she is on roll, of course except for the days when the employee avail 'Leave Without Pay' and/or for the days 'Absent' (not attending to office without any approved leave). Under this practice the monthly salary is paid in full when he/she is present on all working days but when present only for few days or for the part of the month he/she is paid first by computing simple average per day and multiply by the days present together with intervening duty off & declared closed holidays, which means -
Monthly salary /divided by 28 or 29 or 30 or 31 days as the calendar months applicable ( say for example if one full month salary is 20000 Rs. then average salary should be worked out as 20000/30 = 666.67 or 667 Rs.) depending on the month it's relevant. This is because every employee is entitled to salary paid including for off duty (holiday) per every 7 days of attendance.
Whereas, on the contrary, only for the purpose of Payment Service Gratuity a day's average salary is arrived at by dividing it by 26 days (20000/26 = 769 Rs.) By this method the average pay works out more than corresponding method for computing part of the month salary.
20th November 2018 From India, Bangalore
Hi,
You should be having a reason for paying the salary for 5 days. What is actual working days for the employee who joined on 22nd Oct for the month? Does your organization pay for the number of days actually worked [less weekly off] or take the number of days in a month? 26 days does not make sense unless you had 4 weekly off and a holiday. 22nd Oct to 31st Oct makes it 10 days less weekly off [if that is the procedure you follow] should be paid to the employee or all 10 days if it is paid for 31 days of the month.
Thanks and Regards
21st November 2018 From India, Hyderabad
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