Umakanthan53
Labour Law & Hr Consultant
Loginmiraclelogistics
Asso.prof.(commerce & Management)
Rkn61
Hr Manager
Gannahope
Deputy Commissioner Of Labour..a.p.
Bhartiya Akhil
Freelancer

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Respected intelligentsia. Pls clarify me.
I am presenting regarding staff attendance maintained by companies in recent times.
Usually, a month is defined as 30 or 31days of a month to everyone. But in companies spl. Formula.
Now the trend went on like this. From the 26th of this month to 25 of next month is a month.
How is it acceptable? Workers may lose govt. declared Holidays.. A lot of confusion for calculating the received salary month's name.
Suppose a worker if received on or before of 7th of a month for the last worked month. It is right calculation.
Whereas if it is this type of 25th to 24th of the consecutive month... Which month salary he was paid?.
Elders and HRsand Auditors pls clarify me.
Submitted.

From India, Nellore
Just assume that you are paying 4 days(27 to 30/31) salary advance to the employees, and when he left the job the days what ever he worked he will get salary for those days.
From India, Hyderabad
Dear Gannahope,
It's in practice in many establishments to close the attendance on any day in a calendar month not necessarily on 30th or 31st. What's important here is to account the attendance of employees for a full month. This is happening when ascertaining attendance of all units & teams located in a farflung/remote areas especially in project sites. There are practical difficulties to close the attendance on end of the month say 28/29th or 30th or 31st and reach the data in time to the pay roll processor located in the central office or so for preparation of Pay rolls and arrange remittances to the bank a/cs of the employees to hit the stipulated 7th or 10th day of a calendar month. To facilitate this cycle a day say 15th or 19th(and so on) as the beginning of the pay roll cycle ending/closing on 14th or 18th as the case may be. Whatever, no doubt, leave availed/absent/official tour, holiday data gets recorded in the respective day. So there cannot be any missing link nor short or excess payment by this method. No hassle is expected. I had first hand experience on this job where we had managed over 14k employees located in 29 sites distributed all over India spread over between J&K/UP and Kerala. If you'll have any specific issues I'll clarify.

From India, Bangalore
Dear Gannahope,

Month is not defined any where as calendar month and therefore many establishments they count the days for computing attendance for salary purpose beginning from any date administratively generally from 25th or from 26th or from 27th etc. Nothing wrong in that as such but you have to make the payment on 7th / 10th day as applicable, on the end of wage period. Wage period can not be more than one month. I need not to tell you all this since you are holding the position of Dy. Commissioner of Labour.

However, while doing so, i.e. having the wage period not as per calendar month creates many other problems. Person joining or leaving in between the month create lot of issues. Even it creates problem in submitting ECR under PF.

Therefore, I suggest as under:

1. have one date fixed as cut-off date;
2. presume full attendance after the fixed cut-off date;
3. you can have fixed cut-off date different in different month;
4. if employee remain absent on loss of pay after the fixed cut-off date that absent shall be adjusted in next month;
4. thus the wage period will remain as a calendar month only and you will be free from all the confusions.

Hope you will appreciate my solution.

From India, Mumbai
Dear Mr.Gannahope,

This is in continuation of what Mr.Kumar has said about the interesting issue you raised.

The days of a month generally differ according to the calendar to which it belongs. Of course every calendar year has invariably 12 months only. But the average no of days per month differs whether the calendar is based on the earth's movement around the Sun i.e Solar Year or the Moon's movement i.e Lunar Year. Thus, in a regular Solar year, a month comprises of 30.42 days ( 365/12) and in a leap year 30.50 days (366/12). The Gregorian Calendar adopted by Great Britain and its colonies are based on the Moon in which the no of days in a month alternate between 30 and 29 days (365.2425/12 = 30.44 days ). Therefore, for the sake of ease of calculation, a calendar month is generally taken to be of 30 days. Example is the conversion of monthly rate of statutory minimum wage to that of daily rate and vice versa.

However, when we analyse the general practice followed in some industrial establishments in the statutory back drop, I am not able to find any anomaly as such you referred. Both the Payment of Wages Act,1936 [ Sec.4(2)] and the Code on Wages,2019 [ Sec.16] prescribe the wage period not exceeding a month though the term 'month' has not been defined. Besides, both the laws prescribe the time limit for payment in case of monthly wage period only as the 7th day of the succeeding month and not as succeeding calendar month. Therefore, if the wage period is fixed as starting from the 25th day of the current calendar month to the 24th of day of the following calendar month, the wages should be disbursed on or before the 7th day from the 24th of the following calendar month. The month covering more no of days in the wage period/pay roll cycle can be mentioned as the month.

When the Government of India is thinking of changing "the assessment year" under the Income Tax Act from financial year to calendar year for sake of easy understanding of the tax payers, the change you suggested is a welcome one but the practical difficulties pointed out by Mr.Kumar are also there worthy of consideration.

From India, Salem
Pay roll calculation done on the basis of leave period from 26th of the last month to 25th of current month is followed in big companies where the employee force is on higher side. This practice is still followed in many good companies - I am aware. While this practice can not be appreciated in companies where the employee force is 100/200 or below, it is a good practice for companies which employ more than 500/ or 1000 or more staff. The reason attributed to this way of calculation is to scrutinise and regularise the leave details of all employees by Time office department and advise pay of all employees (by regulating their credit & debit of leaves) to Accounts by 30th or 31st. They will get 5 days time of complete this process. After getting advice from Time office, Accounts deptt processes the pay slip and do the fund transfer to bank for crediting to employees account.

Thus if any employee takes leave in current month after 25th, same will be considered for
regularisation/LOP in the next months salary.

From India, Aizawl
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