How Should We Deduct Leave Without Pay from a Detailed Salary Structure?

Dear Senior,

One of our employees has taken two days of leave without pay (LOP) in the month of March. The salary structure of the employee is as follows:

1) 10000 Basic
2) 4000 HRA
3) 1250 Medical reimbursement
4) 1600 Conveyance
5) 833 Bonus as per Bonus Act, 1965
6) 1000 LTA
7) 1317 Other allowances

Total: 20000/-

Since the salary is broken down into components, how should the LOP be deducted? Should it be deducted from the consolidated amount of 20000/30*28 or from the basic salary i.e., 10000/30*28?

Thank you in advance.

SUCHI Agarwal

LOP should be calculated for the entire gross salary (but not including the bonus component).

Ys

Janaka Dasa
Group Dy HR Manager
Vrindavan Chandrodaya Mandir

Hello!

Deductions for LOP should be made on the monthly salary components constituting the payslip and not on CTC.

Regards,

V.L. Nagarkar
HR Consultant

Please note that in the month of March 2017, there are 31 days. To determine earnings:

Gross Salary: Rs.-------- divided by total days in the month i.e., 31 days x days payable.

Bonus is paid on actual earnings. Consequently, in case of Loss of Pay (LOP), the bonus amount paid will also come down.

Dear All,

Thank you for your valuable inputs. The total amount for the Two LOP is calculated as 20000/30*28, which equals 18667/- rounded off. Therefore, the LOP amount is 1333.

Since the employee's gross salary is divided into 7 components, could you please clarify whether this LOP amount will be divided among all the components for deduction, i.e., 1333/7? Will 190.42 be deducted from each component?

Thank you.

Basic: 9355
HRA: 3742
MR: 1169
CA: 1497
Bonus: 780 (As per The Payment of Bonus Act, 1965)
LTA: 935
OA: 1232
Gross: 18,710 for 29 Days Salary in the Month of March 2017

All components should be calculated individually based on days payable.