Confused About Daily Wage Calculation for 32-Day Months? Let's Discuss Solutions

Issue with Daily Wage Calculation Policy

Our company has a policy to calculate daily wages by multiplying the gross salary by 12 and dividing it by 365. However, I am facing problems with the months where the total days are 32.

For example, if Employee A has a gross salary of $12,000 and is to be paid for 31 days out of 32 days in a particular month, then as per this policy, it becomes:

Salary for 31 days = (12000 * 12/365) * 31 = $12,231 (which is even greater than the gross salary).

Please suggest any solutions or alternatives.

Regards,
Preeti

I just want to know why you want to go through the lengthy process of calculating daily wages. Each month has either 30 or 31 days at max, with only one month having 28 days.

Per Day Wage Calculation

Per Day Wage = Salary / No. of days

If you take Salary = 12000 per month and September has 30 days, then:

Per day wage = 12000 / 30 = 387.10

If you multiply this by 30 days, you will get back to 12000. In case someone takes a 5-day leave and you need to deduct that amount:

Per day wage x No. of days worked = 387.10 x 25 = 9677.42 (If it is more than 50 paise, you can add Rs. 1/-; if less than 50 paise, deduct that and round it off).

In February, you need to calculate 12000 / 28 days = 428.57.

That's all, dear.

Regards,
Rose

Which Month of the Year Has 32 Days?

Did we change the calendar system? In any case, your approach is wrong. What you are required to do is pay the full salary for a month where the employee has been present on all working days (or has taken approved leave). In other months, you need to deduct salary for absence based on a daily rate computed by dividing the gross monthly wage/salary by 26.

Thank you all for your suggestions. In the Nepali calendar, the month of Shrawan contains 32 days. I will calculate the per-day wage as suggested by Rose. Thanks once again.

Regards,
Preeti