Understanding LOP Calculation: Should We Use Total Days or Working Days for Salary Deductions?

Dravid
Hi,

A clarification on LOP (Loss Of Pay) Calculation. While calculating LOP, whether the number of days will be considered as:

1) Number of days in a month (30) or
2) Number of working days in a month (22).

Whether the calculated LOP will be deducted proportionately from all the salary components like Basic, HRA, DA, etc., or will it be deducted from the total salary derived after adding all the addable components and subtracting the deductions.

Please clarify. Also, let me know where I can find the supporting statements for the correct information so that I can present it to my management as strong evidence.
Sudandira
Hi,

While calculating LOP, we should consider 30 days, irrespective of 30 or 31. The LOP deduction will be from all the salary components. I don't have any idea about the supporting statements.

Regards,
Sudandira
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