New Employee Mid-Month Start: How Do I Calculate Their Salary?

Dear Sir,

If someone has joined in the middle of the month, how can I calculate his salary?

Thanks,
Ram V.

The salary of an employee depends upon their salary rate, i.e., piece rate, daily rate, or monthly base rate. Mostly, companies are adopting a monthly wage rate system. It can be calculated as Monthly wage rate * number of days worked / total number of days in that month.

For example, if an employee joins on the 16th of January at a gross salary of 10,000, then their salary will be:
= 10,000 * 16 / 31
= 5,161 Rs.

In the same way, we can calculate the salary for others.

His salary is calculated on a monthly basis (30 working days). For example, if he joined in July, a month with 31 days, how can I calculate his salary? Please advise.

Thanks, Ram.V

Hi,

The method is the same; only the working days would differ. For example, if a month has 30 days, divide it by 30. If it's 31 days, divide by 31. Very simple.

Salary Calculation for Mid-Month Joiners

Salary calculation is always a chaotic matter. If an employee's salary is to be calculated when he/she has joined an organization in the middle of a month, it is a usual practice to use either 30 or 31 as the guideline. If it is February, it is usually averaged to 30 days. This is based on a collective agreement with the unions or, if there is no union, it is the unanimous agreement of all the employees. No labor law or rule has set a system for it. The usual salary calculation is based on 30 days, which has been the practice in all organizations in India.

Dear Mr. Ramuvid,

It's very simple to calculate the salary for an employee. If his salary is 10000 and he has attended 16 days in the month of July, then the formula is 10000/31 * 16 days. Is that clear now?

Chaman Verma

In such a case, the salary should be calculated proportionately. The monthly salary should be divided by the days of the month and then multiplied by the days worked.

Regards,
M.L. Barber