Optimizing Salary Calculation Process with Cut-Off Date Adjustment

Hi,

Currently, our attendance was from the 1st to the 30th of the month for salary calculation. We need 3 to 4 days to calculate the salary. But now we want to change our cutoff date. If we forward the salary calculation to our finance department by the 27th of the current month, they will release the salary on the 3rd of the next month.

Please guide us on how we can proceed. Thank you.

Dear Navin,

You can take 26 days of the month for salary calculation. Universally, Sundays are considered holidays. So in a month, all other days are working days. Most months will have only 4 Sundays, which will be 30 - 4, equaling 26. On pro-employee/humanitarian grounds, facts such as there are more 30-day months than 31-day months, as well as the 28/29 days of February, are ignored. Therefore, you can easily forward the details between the 22nd or 23rd of the month for a fast result.

I'm guessing that in a year, one gets 26 working days as leave based on the same logic. Hope that helps.

Regards,

Dear Navin & Dave,

Deciding the cut-off date for the purpose of salary calculation is your prerogative, your choice, and nobody else - like me or any other member of this forum, or anybody from the rest of the world - can tell you about it.

While deciding the cut-off date, you have two options, according to me.

First, have a fixed date as the cut-off for all months and count the days from this date accordingly for payment.

Second, have the cut-off date as per your convenience every month and presume that the employee is present on all the days after the cut-off date. Any absence after the cut-off date should be deducted in the next month. If a person has been continuously absent long before the cut-off date, consider them absent after the cut-off date. You need to monitor this properly.

I hope I have explained it properly, and you have understood it.