Salary Deductions: Should Loss of Pay Come from Gross or Basic Salary?

Niharaj

Hi Nithya,

I have a doubt whether to deduct loss of pay from the gross salary or from the basic pay. Could you please clarify this for me?

Thanks and regards,
Nithya

zena mesra

Dear Nithya,

It depends on company policy, but in most cases, loss of pay is deducted from gross salary. All the components of salary become pro-rata in such cases.

Hope this solves your query.

Regards,
SK Jena

Alphonse

Dear Nithyakousalya,

The reply from Zena Mesra is correct. It depends on the company policy, but most companies follow only for gross salary.

Regards,
Alphonse 😂😂😂
GTE

Rishikesh Kumar

Clarification on Pay Calculations

If we calculate Paid Leave (PL) on the basic salary, then the loss of pay should also be calculated on the basic salary. Additionally, the notice period should be served based on the basic pay only.

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