Salary Deduction for Absence: Should It Be Based on Monthly or Daily Calculation?

Procedure for Deducting Salaries Due to Absence

What is the procedure for deducting salaries due to absence? Should I deduct it based on the entire month or the number of working days in the month?

I am going to deduct the salary of an employee who was absent for 2 days in October. His salary is 2,500 US dollars, and the number of working days in our organization is 22 days. Now, should I deduct the salary based on the whole month (31 days) or on the basis of working days (22 days)?

Would it be 2,500/31 * 2 or 2,500/22 * 2?

Dear All, I am going to deduct the salary of an employee who was absent for 2 days in October. His salary is 2,500 US dollars, and the number of working days in our organization is 22. Now, should I deduct the salary based on the whole month (31 days) or on the basis of working days (22 days)? Is it 2,500/31*2 or 2,500/22*2?

Correct Calculation Method

2,500/22*2 is the correct calculation. The gross salary divided by the total number of working days multiplied by 2.

Gross salary divided by the total number of working days multiplied by 2 is the correct method to calculate the deduction.

Best regards, Rahmatullah Mamond

Hi, if the person is paid based on a contract, then you need to deduct for working days. If a full-time employee, the weekends are considered as paid rest, and you should calculate for 31 days.

It depends on the service agreement entered into between the employer and employee. You can inquire with neighboring similar companies on the above issue.

Acts depend on the country. If it is a US company, the rules are different than in an Indian company. It is better to consult similar nearby companies at your place.

Regards,
D. Subba Rao

Salary Calculation Method

The calculation of salary is as follows:

Salary = (Total days in the month / 30 or 31) * Working days

If the working days fall before or after a Sunday, the employee is considered present for Sunday. If the working days fall both before and after Sunday, the employee is considered absent on Sunday.

I agree with Sriram. That's the correct format for calculating employee leave days in the case of an Indian company. When it's an overseas company, it would definitely differ, as Subbarao says.

Thanks,
Stella.