Confused About Salary Calculation Methods: Which One Accurately Reflects My Pay?

Dear All,

I have a little confusion about the salary calculation. Please confirm which method is correct for calculating the monthly salary as there is a small difference between both figures. If Gross Salary = 6500/-, Total Working Days counted = 27. Half Days = 1, Number of days Absent = 2.

Calculation 1:
Salary: 6500
Half Day: 1 * 120 = 120
Absent: 2 * 241 = 482
Total: 5898

Calculation 2:
Salary: 6500
Half Day: 1
Absent: 2
Total days worked: 24.5
Total: 5904

Thank you.

Hi,

It is really confusing for us. I will give you one simple explanation that I am following in my company.

Salary calculation: Total salary / Total calendar days = 1 day's salary. According to the 1 day's salary, you can deduct the amount. For example, 6500 / 31 = 210.
210 * 2.5 = 524. So, deducting 524 from 6500 gives 5976.

Thanks & Regards,
Vani

Dear dhanu27,

The thread is not clear. If I assume that the person has worked for 27 days and I believe that you are calculating the salary based on the number of days worked, then:

Monthly Salary = 6500
Total days worked = 27
Leaves = 2.5
Salary would be = 5897.50/- (Monthly Salary / Total Working days * Actual Working days)

Again, I don't know about the deduction part as you have not mentioned it.

To calculate per day salary, we consider 26 for months with 31 days and 27 for months with 30 days. Hence, I would only like to confirm about the deduction for leave as we deduct only ESI & PT.

Are you correct on the statement "we consider 26 for months with 31 days and 27 for months with 30 days"?

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Are you correct regarding the statement that "we consider 26 for months with 31 days and 27 for months with 30 days"?

As per my opinion and experience, the second method is the correct one:
T/L working days = 27
T/L Absent = 2.5
Salary days = 27 - 2.5 = 24.5
Salary for the month = 6500/30 * 24.5 = 5308/- (final salary)

Hi,

I am having trouble understanding this sentence clearly. Here, there is no gap between the words, and there are no symbols.

Calculation 1:
Salary 6500
Half Day 1*120 120
Absent 2*241 482
5898

Calculation 2:
Salary 6500
Half Day 1
Absent 2
Total Working Days 24.5*241 5904

Please write it clearly, yar.

Asha

As per my opinion, 26 or 27 days are considered only during the payment of leave encashment, gratuity, and overtime. However, for salary and wages (Monthly Salary / Total Working days * Actual Working days) is correct.

Thanks and regards,
Sumit Kumar Saxena
+91-9899669071, 0120-4131277

The first method is correct, which calculates 5898 as the gross amount divided by the number of working days (27 as mentioned), excluding days without pay due to absences.

Hi Dhanu,

You should be clear about the company policy, specifically regarding the salary calculation per day. The company should calculate the per day salary for either 26 days or 30 days for all months, without considering the specific number of days in each month (31, 30, or 28 days). This calculation should remain consistent for all months, irrespective of government holidays or festival holidays.

Regards,
Anupa

In my view, generally, the salary for a month consists of 26 workdays. Considering that, the calculation would be as follows: 6500/26 = 1 day's salary of 250. If 2.5 days are taken off, then the final salary would be 6500 - 625 = 5875.

Kumarpal Mehta

Dear Dhanu,

I do accept Anupa's statement that the monthly salary shall always be calculated either for 26 days or 30 days. It doesn't depend on the number of days in a month, be it 30 days or 31 days.

Hi Dhanau, I agree with Anupa. Mostly, 30 days per month are considered for salary/wages calculation. But in some semi-govt. companies, the month is considered from the 26th of the earlier month to the 25th of the current month, thus totaling 30 days. Hope this will serve the purpose. Sl

Dear All,

As per my knowledge, the following method of calculation is used:
Total working days in the month = 27 days.
Total present days = 27 working days minus 0.5 half-day minus 2 days absent.
Meanwhile, total present days = 24.5 days.
Gross Salary / Working Days = Per Day Salary.
6500 / 27 = 240.74 per day salary.
24.5 present days * 240.74 per day salary = 5898.13 total salary.
We can give Rs. 5898 as the total salary earned.