Understanding Salary Deductions: How Does Being Absent Affect Your Pay?

Dear All,

Will the basic salary change if the number of days present is less than the number of working days, e.g., 20 out of 24 days? What will be our fixed components?

If suppose our salary structure is as below:
- Basic + DA
- LTA
- HRA
- Conveyance Allowance
- Medical Allowance
- Other Allowance

If anyone can help me with the format and explanation, it would be appreciated.

Awaiting your valuable suggestions.

Thanks & Regards,
Ashwini V Dharashivkar

Mr. Govind Singh

While going through the salary breakup posted by you, it has been noticed that the percentage of basic salary taken for the calculation of gratuity is on the higher side, which should be 0.5% instead of 4.8% when calculated on a monthly basis. The rest is okay.

Regards,

Sivadasan

It depends on your organization itself. Few organizations calculate all the components payable based on the number of days present. Few organizations pay the full HRA amount and decrease the other components, assuming that even if the employee has worked for fewer than the maximum paid days, they have paid the rent for accommodation for the full month.

Please let me know if you need further assistance.

Dear Ashwini,

In my opinion, the basic salary and other allowances, regardless of their designation, will be proportionately deducted if an employee works for a fewer number of days or remains absent. However, if the employee takes any form of leave, his salary will not be reduced proportionately as the basic and other allowances are provided for both work and absence.

Submitted as requested.

Regards, R.N.Khola

Skylark Associates, Gurgaon (Haryana)

[QUOTE=govindsinghnegi;621728]
Hi Ashwani,

All fixed components including Basic Salary will change (decrease in case the number of present days is less than actual working days). Please find attached the salary breakup sheet prepared by me. I hope it will be helpful for you. You can see the formulas used in this sheet, which will serve as an explanation of the salary structure preparation.

Hi Govind,

The basic salary as per the Minimum Wages Act has to be Rs. 3130. There also needs to be a Dearness Allowance (DA) which varies based on the price index declared by the government on a six-monthly basis.

Could you please verify this?

Thank you,
Manuel

Dear Govind,

I am from Bangalore. I have one doubt. Please clarify for me. I am working in IRCTC as a DEO - Accounts (outsourced) for Rs.8,000/- CTC, but after deducting all, I am getting a Net Salary of Rs.6,082/-. I am providing you with the salary slip details below. Kindly verify the details and let me know if what we are getting is right.

Basic - Rs.3000

HRA - Rs.1500

Conveyance - Rs.600

Entertainment/Special pay - Rs.518

Soft Furnishing Allowance - Rs.1000

Total - Rs.6618

Deductions:

ESI @ 1.75% - Rs.116

PF @ 12% - Rs.360

PF - Rs.60

Total - Rs.536

Net salary of Rs.6082

Regards,

Austin

Hi Ashwani,

All fixed components including Basic Salary will change (decrease in case the number of present days is less than actual working days). I have prepared a salary breakup sheet. I hope it will help you. You can see the formulas used in this, which will act as an explanation of the salary structure preparation.

As per the minimum wages of Uttar Pradesh (UP), the helper's salary is Rs 5200/-. It has now increased, and the present minimum wage is Rs 6000/-.

In my company, a helper receives a basic salary of Rs 5200, HRA of Rs 600, and Conveyance allowance of Rs 600, making the total salary Rs 6400. I am considering reducing the HRA and Conveyance by Rs 400 each so that the basic salary of a helper will be Rs 6000, with HRA at Rs 200 and Conveyance at Rs 200. Is it possible to reduce the HRA and Conveyance amounts?

Please help.

Regards,
Khan