Payroll Confusion: How Do You Calculate Working Days for Employee Payments?

When you process payrolls for employees of any company, what days do you take into account for payment? For example, do you consider the total number of days in a month, like 30/31, or do you focus on 26 (the actual number of working days)? What do you do for February, where there are only 28 days?

Please reply as soon as possible. I am very confused.

Hi Asha,

"Payable days for the month" is the correct way to calculate the salary or wages in payroll, i.e., 31/30/28 (whichever may be applicable).

Regards,
L.C. Pal
9811444654

Hi,

Please see the scenarios:

An employee worked for 24 days in August 2007, availed 1 day's paid leave. 1 Holiday and 5 Off days (4 Sundays, 1 Second Saturday). So in this case, the total number of payable days would be 31.

An employee worked for 20 days in August 2007, availed 1 day's paid leave, 4 days leave without pay. 1 Holiday and 5 Off days (4 Sundays, 1 second Saturday). So in this case, the total number of payable days would be 27, and you need to calculate the salary for 27 days.

Hope it is clear.

Hi,

Why don't you put the format in the forum for discussion so that everyone would like to view?

Regards,
Capricevogue

Hi,

Thanks for replying. But I got more confused.

Let's take a scenario where an employee is in the probation period and has no casual leave, and whatever leaves are taken are LOP. The employee has been absent for one day in February, one day in March, and one day in April. And the company calculates the payment period for respective months as 28 days, 31 days, and 30 days. So in this case, the leave amount deducted would be proportionate to the number of days in that month. Because February has only 28 days, the amount of deduction would be more as compared to March and April.

What do you do in such scenarios?

Please do tell me because this scenario happened in my company, and I was not able to reply back to the employee.

Regards,
Asha

Hi!

I am a postgraduate student currently working on a project for payroll. I would appreciate it if you all could help me with the process of how to work on it and concentrate on which areas.

Regards,
Anjali

Dear Asha,

When you are calculating the actual number of days (i.e., 30 or 31) for the payment, you can consider 28 days for February. If you are calculating based on a fixed 26 days for the whole year, then it will be 26 days for February as well. The number of absent days will be deducted from 26 to determine the payable days.

Regards,