How Should I Handle Partial Payment of Fixed Allowances for a Departing Employee?

Hello Everyone,

I am an HR professional in a company. I wanted to ask for an opinion on my concern. One of my employees has left the organization, and now I have to pay her salary for the leaving month in which she worked for 15 days. We pay a fixed HRA and conveyance allowance, so I want to ask if I can pay the fixed HRA and Conveyance for 15 days, like this: 4000*15/30= 2000?

Regards, Mudita Malviya HR

Dear Mudita Malviya,

The division of time for practical calculation purposes is always an approximation. Therefore, a month is notionally considered to comprise 30 days, regardless of its actual number of days. Your calculation seems appropriate to me.

You can pay the fixed component of salary proportionately when an employee leaves in the middle of the month, since even the fixed amount is set for a month only in the case of monthly-paid employees.

B. Saikumar HR & Labour Law Advisor Navi Mumbai