How To Divide The Monthly Salary - Doc Download

Dear friends,
I have one doubt in salary calculation. Kindly, clarify me.
We have the one ERP Payroll software. This software divide the salary as per below formula;
Fixed salary / 26 * (26-LOPdays)
This formula will not work properly when 27 days or 24 days working day months.
I asked to change the formula as per below;
Fixed salary / Actual worked days * employee present days.
But, somebody did not accept it and asked to divide 30 days, and somebody asked to divide by except sundays.
Dear friends, how you are all calculating salary for your factory. Kindly, explain me.
Best Regards,
Srinivasan

Dear Srinivasan,
Don't get confused.
Fixed salary / Actual working days of the month X Employee No. of present days.

Dear Srini,
Ask him to written law.
26 days divide is for generally per day salary calculation purpose only such as (EL calculation etc)

Dear Friends,
Mr. Selvan is right. As per act the farmula is
Gross salary / Actual working days of the month X No. of present days(including woffs & Leaves with pay)
For overtime calculations we have to take 26 days.
Thanks & Regards,
Virender Singh.

Dear All
Salary will be calculated as
fixed salary / Actual days in a month(31 r 30)* No.of days worked..
Its the correct way to calculate salary
Regards
venkatesh

Dear Mr. Venkat,
One employee is leave from Wednesday (March'04) to next saturday(March'13). Will you add int the salary the Sundays of March'8 and 15 or not?

Dear Selvan
If the employee is absent from Mar 4th - March 13th the leave will be 10 days including sunday.. If the company policy allows you,wont to calculate sunday, then 9 days will be the leave days
Regards
Venkatesh
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Dear Abhishek
Salary can be divided as Basic,hra,conveyance,Medical Reimbursement,Leave travel allowance,Special allowance,variable pay,Mobile allowance,Education allowance,Books and periodical..
kindly fix the component whichever applicable to your company
Regards
Venkatesh

Dear Abhishek,
Salary can be break Basic, DA, HRA, Conveyance, Other Allowances (There are many allowances available).
Generally Basic May be 40 to 60 %.
DA will be fixed by Government every year April as per Price Index.
HRA may be 50 % of Basic.
Remaining parts may be Other allowances.
Note. There is no specific rule to salary break up. This is commonly practiced one.

But, to my mind if we consider the number of working days of the company as to calculate the salary then the following problem will arise:
1) The number of days in each months keep changing i.e. 28,30,31, hence it will be very difficult to calculate the exact salary.
2) The employee is offered a monthly salary of ____, that means that irrespective of the number of working days of the company, s/he will be given a monthly salary as per his attendance for that month.
What I think here is that the number of working days of the company should be fixed as 30 always, hence the formula would be-
(fixed salary / 30)* No.of days worked
Your comments please....
Thanks,
Piyush