How Should I Address Payday Calculation Issues with My Boss at Work?

Hi all,

I am the HR manager of an educational institution. I joined last month as an Assistant Manager in HR. Recently, I came to know that my company is using the number of working days (excluding Sunday) to calculate. However, I believe we don't calculate that way. For example, if it's April, it should be considered as 30 days, but here they exclude Sundays.

Kindly advise me on how to communicate this to my boss and how I should explain it to him.

Regards,
Mythili

Normally, payable days would be [Total Days worked + Holidays + Weekly Off Days + Paid Leave Days] - [Absent Days]. Absent days could be on account of days in which paid leave is not approved, showing up for work but not staying in the office for the required hours, unauthorized absent days, etc.

Thank you!

Salary Calculation Method

When calculating wages/salaries, divide by 26, multiply by the number of absent days, and subtract from the total wage/salary. For example, if someone has a monthly salary of 26,000/-:

- Case 1: Full attendance
26000 - 26000/26 * 0 = 26000

- Case 2: Two days absent
26000 - 26000/26 * 2 = 24000

- Case 3: Three days absent, two days on leave
26000 - 26000/26 * 3 = 23000

- Case 4: In a month with 23 working days and 31 total days, with 1 day of absence
26000 - 26000/26 * 1 = 25000

This method calculates salary based solely on the number of absent days. Payroll calculation methods vary across organizations. However, for gratuity and leave encashment, we divide wages/salaries by 26. For minimum wage, the daily wage is calculated by dividing the monthly wage by 26, and vice versa.

Thanks,
Manish

You can divide the gross salary by 30. The Payment of Gratuity Act, 1972, specifies 26 days for calculating gratuity only (not for monthly wage calculation). The Minimum Wages (Central) Rules, 1950, Rule 23, specify 26 days for daily rate wage calculation only (not for monthly wage calculation). Monthly rate means you may divide the gross salary by 30, which is widely accepted. As per labor law, if anyone works 6 days, one day should be a weekly holiday with pay.

Example: Gross salary 45,000, Absent 2 Days, Payable Salary: [45,000 - ((45,000/30) x 2)] = 42,000. Even though month days are 28/29/30/31, you may use 30 days to divide the gross salary for monthly salary calculation.

Regards,
T. Thirumurugan

If an employee is absent before and after a National Holiday and he was not present in that week, whether the employee is entitled to that National Holiday or not. If he is entitled, then under what law, and if there is any case diary, then quote it. It is necessary.