Is My March Salary Calculation for a New Employee Accurate? Seeking Advice from HR Experts

Dear HR Consultants,

Greetings...!!!

An employee with a salary of Rs. 70,000 per month joined my company on 20th March 2017. How much do I have to pay him for his March salary?

I calculated one day's salary as 70,000/30 = 2333.33 (Considering 30 days in March as the standard, even though February has fewer days).

Payable Salary: 70,000 - (19 x 2333.33 {Number of absent days}) = 25667

Is this method correct for salary calculation? Please advise.

Best Regards,

Salary Calculation Based on Days Worked

If you calculate salary as per 30 days every month, then you are paying only for 360 days. Therefore, it is best that you take the number of days of each month to calculate the salary. Here you have taken 11 days as his present days, but in actuality, he has worked for 12 days. So, you are paying him for one day less on paper. According to calculations, the difference is just Rs. 75, but the records show that he is present for only 11 days and not 12 days.

Impact on Gratuity Calculation

This discrepancy will also affect the number of days for Gratuity in the long run. If his salary is calculated based on fewer days due to leaves he has taken, it will impact the total days considered for Gratuity. There won't be any issue if he is present for the entire month, but even a single leave will alter the number of present days.

Regards,

For an employee who joined your company on 20/03/2017, salary should have been paid on or before 07/04/2017 (if the establishment employs less than 1000 employees) or on or before 10/04/2017 (if the establishment employs more than 1000 employees) according to The Payment of Wages Act, 1936.

For monthly-rated employees, please calculate gross salary divided by the respective total days in the particular month multiplied by days payable.