Salary Calculation-Important

Hi,
Basically experience letters are same for all field there is no any specialisation for any field.

Dear Experts,
I have doubt. Till now in my experience we are considering 30 / 31 / 28 days as the basis for salary computation. Where as the actual wage should be 26 days only. even we calculate gratuity for 26 base only.
then my doubt is that while calculating..the lop and net salary which method should be followed and any rule / act to refer as under:
1. Earned Salary = Actual Gross / No. of total days in a month * Actual working days.
or
2. Earned Salary = Actual Gross / 26 * Actual Working Days.
which is the correct Method ? I have been asked by the management that when we are paying for 26 days (gratuity), why cannot we calculate for 26 days for payroll also instead of 30 / 31 days ...?
please clafify.
balaram
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The Salary deductions are always done on Gross Salary along with the allowances
15,000 per month (30 days)
when he is absent for 2 days; He will get
(15,000/30) * 28 = Rs.14, 000.00
Suppose if you calculate for 26 days
then;
(15,000/26) * 24 = Rs.13, 846.15
So, which one you think would benefit the employee.
All the acts are formulated to safeguard the interest of the employee/Workers

Dear friends,
pls excuse me if i appear too naive. we three managers are working in a pvt ltd. JV company owned by a single owner who is the MD having 60% share. we have worked for about 10 yrs in the hope and assurance that the MNC partner will one day reward us with good remuneration which so far we are not fully satisfied with. There are 16 employees (3 Accounts, 2 service engrs, 1 asst.mgr, 2 engrs, support staff etc. and we three managers bring in most of the business from different regions totally apx 16 crore rupees.

there is no manufacturing only import and sales of engg. eqpt. we each get about Rs.32000/- lumpsum p.m (+mediclaim premium, conveyance allowance 2500, Rs.1200 cellphone bill, 2 weeks leave, 12 casual leave,+apx 10-15% sales incentive on salary) above us is the MD who pays himself apx Rs.3.8 lac per month salary only + all other perks + of course profit+financial benefits of being MD).

Please anyone advise, if by any yardstick is it justified? He claims he is paying us among the best, but will any pvt company of this size pay its MD more than 10 times its next level employee who are bringing in the business?
rgds/PK

Hi Seniors,
Why any one is not answering to balaram's query. Same problem is faced by me. Can any one reply to this. What one should take to calculate :
If there is 31 days in month? should it take as 26 days or no. of total days in the month.
Please reply.
RAHUL Mhatre
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Hi to all
Can anybody solve this salary Calculation problem????????????????
Example:
Basic = 3000.00
No. of Days = 31
Leave Taken = 2 Days (Loss of Pay)
Present Days = 25 + 4 Week Holidays = 29 Days
Please help me for the above salary calculation. How much we have pay for above employee..

Its all depends upon the Company Policy But as far as Pf we should not deduct full lop in Basic & DA u know y b cos v calculate PF from this 2 only if suppose it ll b nil in such case mean how can v calculate so deduct from gross only

Dear All,
I have gone through all the posts minutely, and find that there is ambiguity in the opinions. Rightly so, as every organization has its own way to calculate salary.
If all allowances are pro-rata; then IT IS ADVISABLE TO WORK STRAIGHT FROM THE GROSS PAY;
IF SOME ALLOWANCES ARE NOT PRO-RATA BUT FIXED ON MONTHLY BASIS :
Some organizations may have their own peculiar salary plan.
For example, if an employee is present even for a week he gets FULL Meal Allowance for the month; or irrespective of the number of attendance, he gets FULL Medical Allowance; Or,to be eligible to get Transport allowance pro-rata; he must be present for at least 5 days in a month.
In such cases, for easy calculation, remove these components from the Gross Pay; work out the salary for days payable, and then ADD each payable component after calculating its quantum and APPLICABILITY separately.
Warm regards.