Dear Mr. Govind, Every month, we calculate the salary based on the number of days in the month. However, I would like to inquire about the impact of calculating the salary based on 26 days, as it seems to affect deductions, particularly ESI deductions. Could you please advise on the preferred calculation method?
Salary Calculation Methods
If we calculate the salary based on 31 days and the monthly salary is 10000/26 = per day 384, then for 30 days present, it would be: 10000 - 384 = 9616
Gross Salary = 9616
ESI 1.75% = 168
Net Salary Paid = 9448
Alternatively, if we calculate the salary for 31 days and the monthly salary is 10000/31 = per day 322, then for 30 days present, it would be: 10000 - 322 = 9678
Gross Salary = 9678
ESI 1.75% = 169
Net Salary Paid = 9509
Regards,
Gayatri