Hi,
Salary for all purposes need to be calculated calender month wise i.e. 1st to 30/31st of the month. It synchronizes with the quarterly/half yearly/annual closing of the accounts of the company. If salary is calculated in between the month say 26th to 25th, at the time of every closing of accounts, you have to make provision for unpaid salary (26th to the end of month) and show as unpaid expenses in the Balance Sheet of the company.
I think, no company will put its goodwill on stake by showing provisions on account of unpaid salary.
However, the company keeping its HR Relations with its employees and financial position, may decide to pay salary for the current running month on 25th/26th of the month. Can you imagine institutions like State Bank of India is paying pension to its retired employees on 25 to 27th of the current month for which pension is due on the last day of the month. It is the best example of excellent HR relations.
TR Chhabria
Mob: 9818444595