Umakanthan53
Labour Law & Hr Consultant

PRIME SPONSOR - FACTOHR - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Hello there,
In our company, we calculate salary based on number of days in a month 28, 30, 31, the no.of days of that month
Let's say, employee salary is 30,000 per month, salary month is June (30 days), and employee worked without taking any leave for that month ( excluding Sundays and public holidays )
Final salary = (30000/30) * No.of working days
Let's assume, In June, there are 5 Sundays and 1 public holiday
Do we need to include the Sundays and other public holidays in "No.of working days" or exclude from the total No.of days ( 30 days )
No.of working days = 30 or ?
No.of working days = 24 ?
Final salary = (30000/30) * 30 ?
Final salary = (30000/30) * 24 ?
Please clarify
Thanks in advance :)
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear RandR,
Had you mentioned what sort of entity yours is - whether a shop or establishment falling under the Shops and Establishments Act or a factory under the Factories Act,1948 or an establishment falling under any other establishment-specific Labor Law - it would have been easier to answer.
That apart, how do you define a working day? as a day of 24 hours or as a number of 8 hours within a specified continuous stretch of time period including breaks of rest in a day of 24 hours?
I hope that you would define a working day as a single stretch of hours the employee is normally required to be at your disposal and not an entire day of 24 hours.
Similarly when you determine salary on monthly basis, you have to assume that a month comprises of 30 days and the monthly salary include all the statutory holidays and authorised leave as well.
Hello Umakanthan,
Thanks for your reply.
It is a IT company, 8hrs work, from 9AM to 6PM (1 hr lunch),
My another question is:
If an employee worked only 2 days in a month and took leave for remaining days, in this case,
Do we need to pay for 6 days ( 2 working days + 4 Sundays ) ?
Final salary = (30000/30) * 2 ?
Final salary = (30000/30) * 6 ?
Thanks
Dear Rand,
I would request you to go through the provisions relating to working hours, weekly holidays, leave etc., under the TN Shops and Establishments Act,1947 which is applicable to your IT establishment and then raise all your hypothetical queries.
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™