Confused About Monthly Attendance Calculation? Need Advice on Handling 30 vs 31 Days

Dear All, I am working with a ceramic factory, and I am new to HR. We are counting the attendance for the period from the 26th to the 25th of every month. However, I do have one question:

1) For the May attendance, we calculated from April 26 to May 25, i.e., 30 days.
2) For the month of June, we calculated from May 26 to June 25, i.e., 31 days. But according to records, we have to show May as 31 days and June as 30 days only.

So, can we count the days from April 26 to May 26 for May and from May 27 to June 25 for June?

Thank you.

What I would suggest is that you take a standard denominator, i.e., 30 days for calculating the salary and calculate the salary every month from the 26th of the current month to the 25th of the next month.

Regards,
Ruchi

Just for the sake of knowledge, I would like to understand the reasoning behind calculating from the 26th to the 25th and why not the calendar month? One possible explanation could be related to paying salaries on the 1st or 2nd of the month.

Previously, my company also followed the same pattern of the salary cycle. Whenever such a situation arises, we include the 27th day of the month so that it will get adjusted with the law as well. This means for the month of May's salary, i.e., from 26 June to 26 May, there are a total of 31 days. For the salary of June - from 27 May to 25 June - the total days for the month of June's salary will be 30.

I believe that this solution will resolve your problem, and the company will also avoid falling into any legal traps.

Regards,
Mahipal Singh

For better handling of the attendance cycle, you can consider base days as mentioned below: If you are preparing the salary sheet for June (calendar days will be 30, but you should calculate for 31 as per your company cycle) and your cutoff from May 26th to June 25th, June. In this case, you can presume the attendance of 26th June to 30th June as full present days for all, and any absences in between you can update the same in the next month cycle. But for this, you need to send an HR circular to all employees.

For calculating the salary, I have attached an input format that will be helpful for all.

Regards,
Iqbal Adecco India Pvt Ltd Bangalore

Reason for Calculating Salary from the 26th to the 25th

The reason for calculating salary from the 26th to the 25th is because some time is required for processing salary, leave, compliance checking, etc., which takes about 3 days or so, depending on the number of employees and compliances to be checked. Post that, the salary can be credited without any hitch to the employees' accounts on the 31st or the 1st. Thus, there is no time delay in salary credits, and at the same time, payroll gets sufficient time to check accuracy, etc. Additionally, you need to get the required budgets approved prior to disbursements.

This practice is usually followed in companies with a staff of 100+ since it is a lengthy process to do payroll.

I hope this answers your query.

Regards,
Deena Jagasia

The mentioned cycle would be the attendance/leave cycle, and the salary cycle would be the same as the salary month. For example, if it is the June Month Salary, the attendance cycle would be from 26th May to 25th June, and salary calculated from 1st June to 30th June.

Dear team,

How do we calculate the February month salary when we have 31 days of attendance data, and in the month of March, there are 31 days and 28 days of attendance data? Please suggest a solution.

Thank you.

Dear Vishwanadh,

Greetings!

You can't do this. This can be done only for daily wage workers or contractual workers; you can't do it for contractual employees either. It's okay if the count comes to 30 days. Proceed based on the number of days in the calculation, whether it's 30 or 31.

Regards

Hello everyone, currently, my company processes salaries on a 1-30/31 basis. However, we are now looking to change the attendance cycle for salary processing from the 26th to the 25th. My question is:

1. If salaries for July were paid based on attendance from the 1st to the 31st of July.
2. How do we adjust salary calculations for August if we consider attendance from the 26th of July to the 25th of August? This could result in double payment for the period of 26th to 31st July.
3. We cannot initially consider attendance from the 1st to the 25th for the first month or deduct it later as that would mean employees receive only 25 days' salary.

Please assist me with this issue. Thanks in advance.

There are two things that need to be followed: Attendance period and Salary period. The Attendance period is flexible based on convenience. The Salary period is fixed per calendar month. If you run the attendance for the Aug '19 period from 26th July to 25th Aug, you are required to pay salary from 1st Aug to 31st Aug. Any absence from 26th Aug to 31st will be adjusted in the next month. If an employee leaves, adjustments will be made in the Full and Final Settlement.

Simple...

Already, salary has been calculated for the month of May (i.e., 31 days). Now, for June, we will consider 30 days, and the remaining 5 days (27th June - 30th June) will be adjusted in the July month. For example, in the case of an absence during those days, Loss of Pay (LOP) will be calculated based on the days in June (i.e., 30 days).

LOP for 28th June would mean - salary Rs. 10000 / 30 * 1 = answer, which will be reflected in the July month.