Salary Calculation Confusion: Why Do We Use 30 Days Even in 31-Day Months?

neethurajan
Dear Seniors,

Can you please help me with the below-mentioned query? The calculation is made for 30 days in a month. Why do we calculate salary for 30 days when some months have 31 days?
abbasiti
Dear Neethurajan,

Salary is the compensation for the work done for one month. One month may vary as 28 days, 29 days, 30 days, and 31 days. So it is not 30 days. Its approximate ratio is 3:1:16:28. But for some purposes (e.g., PL encashment), the salary will be divided by 30. It is a criteria/formula only. For gratuity, the division will be by 26, for EPS-95 (PF pension), it will be by 70, etc. Consider all these as formulas. Then there will not be any confusion.

Abbas.P.S
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute