Confused About Monthly Salary Calculation? Let's Clarify the 26/27 vs. 30/31 Day Rule

Dear Sir,

Please help me understand the rules for calculating salary. I am confused about whether the salary for the month should be calculated based on 26/27 or 30/31 days. For example, if the monthly salary is 10,000, how should it be calculated:

Is it 10,000/26 or 30 * one day's salary (including Sundays or not)?

I would like to know the rule and any justification for it so that I can explain it to my colleagues and clear their doubts.

Regards,
Archana

If your employee works on a basic fixed salary, you should calculate the salary based on 30/31 days. If your employee works on a piece rate or daily wages, you may consider 26/27 days. :)

Hi, whatever you said is okay, but when it comes to loss of pay, it is going to be different. When in the month of February, what is the calculation?

SLG

Hi,

If I am getting 8500 as a CTC per month, how can I calculate CTC in terms of HRA, PF, LTA, basic salary, and other allowances? Please help me out with this problem.

Note: If there is any link available for HRA, LTA calculator, please share those links also.

Thanks,
Ramakrishnan

Salary calculation can be done as follows:

- Calendar Days: total salary divided by days in a month multiplied by the number of days to pay.
- Working Days: total salary divided by the number of working days in a month multiplied by the actual days worked.
- Working Hours: total salary divided by standard working hours in a month multiplied by total worked hours. For example, if an employee works 45 hours in a week (8 hours a day, 5 days a week), then 45 * 52 / 12 = 195 as standard working hours. Here, 52 represents the total weeks in a year, and 12 represents the total months in a year.

For salary calculation with a gross salary of $10,000 and 100 worked hours:
10000 / 195 * 100 = 5128.

Regards,
Nasar