Confused About LOP Calculation? Let's Discuss How to Determine the Basic Amount

Dear All,

I am confused about calculating the LOP amount for employees. If an employee works 28 days in a month out of 30 days and their gross salary is $30,000 per month, how should we determine the basic amount?

Should we:
1. Calculate the basic amount as 30000*28/30 based on the gross salary, or
2. Consider $30,000 as the gross salary and then calculate the LOP amount accordingly?

Please provide your suggestions.

Hi,

If you calculate salary = 30000 / 30 * 28 = 28000. If you calculate LOP = 30000 / 30 * 2 = 2000.

Thank you.

Hi,

Salary is (Gross) $30,000.

Earned salary only changes (Payable Gross) to $28,000.

If you need LOP Deduction (Gross $30,000 - Payable Gross $28,000 = LOP amount $2,000).

Hi,

Your basic salary will reduce based on the number of working days the employee has worked.