Confused About Salary Calculation: Should It Be Based on 8 or 8.5 Hours?

Dear seniors,

I wanted to ask if someone's salary is Rs. 15,000 and our work timings are 8.5 hours, out of which 8 working hours and half an hour lunch. So if we calculate this person's salary for, let's say, 3 hours, will it be Rs. 176.47 or Rs. 187.5 (taking 30 days in a month as a base)? Will it be calculated according to 8.5 hours or 8 hours? Please clarify.

Hi Meenu,

The salary calculation is always done based on the overall hours that are mentioned in the work contract/appointment letter. This will include non-production hours such as breaks, training, and meetings. If any deductions on hours worked have to occur, they will be in accordance with the work contract/appointment or based on incentives linked to productive hours.

Hope that answers the question.

Thanks

Hi, dear. Salary is calculated on a daily basis as well as using the piece rate method. His daily salary will be Rs 500.

Thank you.

Lunch breaks shall not be considered as they are not part of working hours unless specifically mentioned in the contract/appointment letter.

Hello dear,

First of all, I want to tell you that if we calculate our salary on a monthly basis, i.e., for 30 days or 31 days, then it also includes 4 Sundays (Sat. optional). If no salary is deducted for off days, then why should we deduct the salary for lunchtime? Also, in some companies (MNCs), if the salary is maintained on an hourly basis, there are possibilities of deducting the salary for lunchtime.

You must calculate your salary based on 8 hours, not 8.5, because according to the Factories Act, 8 hours are considered as working hours. Therefore, your 0.5-hour lunch break should not be included in the calculation. Then, see your hourly salary breakdown as follows:

15000 / 30 = 500
This is because your monthly salary is 15000, and since there are 30 working days in a month, your daily salary comes out to be 500.

500 / 8 = 62.5
This is because 8 hours constitute your working hours, resulting in an hourly salary of 62.5 rupees.

Thank you, my associate.