Salary Period Calculation

Dear All,
In our company we have salary processing period from 1st to 30/31st of the month. Now we are going to change this period and I have been asked to process salary from 26th of the previous month to 26th of the current month.
Now april'13 month salary (period- 1st to 30th April'13) has been processed. So, I feel in this May'13 month, salary should be processed from 1st May to 25th May'13. Then in further months, we may plan to process in 26th - 25th period pattern.
But one of the seniors saying that we cannot process salary for 25th days.
Can somebody tell me what actually should be done here so that salary could be processed timely for all the employees.
pl reply now.... Thanking you...

Yes, you can not process for 25 days. But anyway salary period is for the sake of leave and attendance working and convenience of payroll processor.
For any statutory and accounting purpose, you need to follow calendar months and financial year, right?

Hi :
You will have to process salary for 25 days if you have to regularize as per the new payroll schedule. For the convenience of employees maybe 5 days salary can be processed as advance and adjusted in the next month's salary. This will avert negative reaction from employees for being given less salary.
Hope this helps.
- Gia

hi
I think it is not that they have asked you to process salary for 25 days and it is not possible. They must have told to take 25th of every month is CUTT - OFF DATE FOR PROCESSING SALARY, so that salary will be credited on time.
example
May month salary
April 26th to May 25th.
thanks
Devaki Reddy

Dear Vishal,
Your senior is right, you can't give an employee salary for 25 days for having worked for one month in order to change you system of payment. It will be incorrect and unjustified.I agree with our member Sh Gia that for the first month of change over, 5 days salary can be processed as advance and adjusted in the next month's salary. Another way is that you pay the employees 25 days salary on 26th of the first month mentioning them clearly that the salary is so calculated in order to facilitate the change of payment system.
BS Kalsi
Member since Aug 2011

Hi Vishal,
First thing to check is that, do you tag any particular reason for this change? Is this planned for Retention, or kinda.....?
You need to pay the salary for the work performed by an employee according to the Law. Can you please let me know when is your pay date? That would bring in more clarity about the case, which would help in better comments/suggestions.

What we do in our organisation is we take the cut off as 25th of every month but the salary is processed for whole month. We consider the person to be present after 25th to 30/31st of the month. In case he/she takes leaves between 25th and 30/31st of the month, the same in adjusted in next month salary. In reality 25th is just the cut-off date for salary to get processed on time.
Regards,
Bhavana

hi
i m working in Dubai and the cut off date in our company 25th but we are paying 5 days in advance if any make absent on the last 5 days we are deduting these days from his comming salary mention in payroll adjustment last month salary.

Hi Vishal,
Yes u can pay for 5 days salary in advance. in our company i also follow the same thing. i am working in japnease company in gurgaon. I took it as assumption that they will come surely and if any body is going on leave they have to inform us in advance. but in rare case if some body is going on leave without information i just carry forward in next month. so u can just follow the same method.

we have the process of calculation the salary from the 26th to the 25th of the current month. we get the salary for the entire 30/31 days which is for the month.
even while you are doing the attendance from 1st to 25th for this month. you will have to give the salary for the entire 30 days only.
5 days will be an adjustment,