Salary Calculation - What Should Be The Base?

Hi,
We are a start-up IT firm in Gujarat.
We are framing our HR policies when one question came up...what is the Base for calculating the number of days attended?
I read somewhere that we should calculate the salary based on 26/30 days, irrespective of what month it is.
But in that case, please clear the following scenario.
Month - July 2014
4 Sundays + 1 Holiday (Eid)
Person X took 1 LWP
If we take 30 base,
Days worked = 25
Weekly Off = 4
Holiday = 1
LWP = 1
-------------------------
31 days.
So how do we calculate based on 30 days??
OR do we keep on varying it to 30-31 based on the month?? But then the salary per day will keep on varying...
Awaiting your valuable inputs.

Dear Megha,
find this format..
Salary calculation= Salary/Month days*Paid days
Suppose that A is salary 5000 then
5000/31=161.290 One day salary
161.290*31=5000

Dear Megha,
Salary / month days x worked/paid days.
With best wishes,
Venkata R Murthy .A

Dear Mrugen Vyas,
From your calculation, I understand that we vary the number of days as per the month.
For July, the salary per day would be 322.58,
For September it would be 333.33,
For February it would be 357.14.
Is that correct? Does the salary per day keep on changing?

Hi
I am not sure how it is implemented in India, but in Malaysia, we usually go by this formula
(Basic salary / No. of calendar days in the month) x no. of actual days worked in the month to derive the basic salary. The same formula would also apply for unpaid leave calculation where you will replace the no. of actual days worked with the no. of days of unpaid leave. All HRIS will have this formula built into the system as a standard practice. This is the formula according the labour laws here. Some companies practice 26 days etc. but that will be more for overtime, not basic salary or leave.
Typically if you apply the above formula, you should not have to change the formula every month. The software should take care of it automatically.
Hope that helps.
Venkat
Kuala Lumpur, Malaysia

Hi Megha
Mr. Vyas has aptly answered your query, if you take 30 days as base then the salary per day will increase/decrease as per the No. of days of that particular month, or else you do not take base of 30 days instead go with actual days of the month, if you want the per day salary to be same. You have a choice

Salary is normally per month and not per day as in the case of daily wage earners. As such any calculation has to be made based on No of days in month and no of days salary is to be paid for.

Hi Megha,
The salary per day will vary from month to month. For this you have to take calendar month basis and number of days in that month. You have to take in to account that paid holidays, paid weekly holiday and leae without pay, unauthorized absent etc. No I will explain you as under.
Mr. A salary per month is Rs. 7500.00. The salary is payable for the month of July-2014. He has worked for 25 days and assume 1 day is leave without pay. July has got 4 sundays and 1 holiday. Now the Calculation is Rs.7500 divide by 31 and multiply with no.of days salary payable (with pay) His salary for the month of July 2014 payable is Rs.7258.00. Although, our friends has given their opinion, it is explained with example.
I hope that it is clear to you.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant