Loss Of Pay - Am Confused ??

sukanya_vish
Dear Members,
I have gone through some of the threads on loss of Pay. And now I'm confused:?:
In my organization, there are 3 situations, when the employee has loss of Pay:
1. Lates
2. Availing leaves after his/her paid leaves have exhausted.
3. Some Disciplinary non-conformity
What I have gathered is, that the loss of pay affects all the components of the salary and also the PF calculation.
But does it apply to all the above 3 situations. In one of the threads I read that for pt 2 i.e. loss of pay on leaves, only affects the Basic and DA. I would request all of you to bring in some clarity.
Also the salary components here are:
Basic - 40% of Gross
HRA - 50% of Basic
Conveyance - Rs 800 /-
Spl allowance and Metro city allowance - Balance
Please help :confused:
Thanks in advance
Sukanya
Aashitsrivastava
Dear,
There are two things
1. Deduction for any disciplinary action or late
2. Leave without pay due to any reason
In Case 1 - You can prepare full salary and than deduct some amount due to any reason. In this you have to pay all allowance and benefits like PF, Bonus etc, but in other case if you give LOP than you have to deduct all allowance and benefits like PF, Bonus etc.
If you have any other confusion pls write me.
Aashit
sukanya_vish
Thanks Aashit,
Please tell me what will be this some amount:
Will it be Basic only or all the other components.
Deduction in basic would lead to deduction in PF contribution, which ideally according to u shouldn't be deducted.
So can we deduct that from other components. If yes, then which all out of HRA, Spl grade, Metro city, Conveyance??
Regards
Sukanya
Aashitsrivastava
Dear,

Some amount you can deduct from deduction column which will not affect employee's salary.

If you give LOP / LWP you have to deduct all the component of Salary including PF and Bonus also.

Aashit
htdesai
Hi,
When allowances are linked with number of days present, then it will affect allowances like basic , DA and obviously PF, bonus etc. if the person is marked absent for what ever reason mentioned by Aashit.
Regards,
Harshad
Madhu.T.K
Leave without Pay is basically from the basic salary. Since DA and HRA are also linked to Basic salary as percentage, when dedction is made from basic salary, DA and HRA will also be reduced proportionately. As such EPF/ ESI will also be reduced. As regards CCA, one or two days of LOP will not have any bearing on CCA but full amount of CCA will be paid (Strictly depends upon the company's policy) But if the LOP is substantial then proportionate reduction of CCA will be made. You cannot expect to ask for sunday wages, HRA and CCA from the company just after remaining on leave without pay for one month!!!!!
Regards,
Madhu.T.K
manishswadesh@gmail.com
Hi, Can anyone plz let me know "If employer has not paid the salary from several month and due to this if employees are not coming to work because they do not have monry to come to office, will it be considered as LOP/LWP.
gobikannansudhakar
Dear sir,
i have a doubts in payroll that if the amount of employee comes in Other deduction column, will it affect the PF amount? pls let me know the answer? pls assist me.
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