Confused About Salary Calculation for Casual Leaves? Let's Clarify the Present Days Count

Hi cud u anybody clear my confusion.
Ex: a company has 12 casual leaves per year i.e 1 leave per month. Now if an Employee has taken 1 casual leave in a month out of 30 working days, in the payroll she do we write present days as 29 or 30??
Bcoz if we write 29 present days, as per the formula we use (salary per day × present days in the month), the employee gets salary for 29days only but as it's a casual leave he has to get for 30days.

If the leave is paid, then her present days will be 30. You can show the leave balance calculation on the payslip that she availed the Casual Leave for the month.

Dear Sandy,

Whether the leave was paid or Leave Without Pay (LWP) is important to consider. If it is a paid leave, then the employee is eligible to receive remuneration. However, if it was without pay, the employee forfeits wages for that period. In the case of unauthorized absence, the employee also forfeits wages for the time they were absent.

Thanks,
Dinesh Divekar

Moreover, in response to your query, you should consider using paid days instead of present days to calculate the salary. That way, it will include any paid leave if applicable.

Dear Sandy, I opine that in the payroll, it should be Days Payable, not Days Present (DP means - Days Payable). Hence, you need to mention the number of days the employee is eligible for salary in that particular month. If it is clearly mentioned as Days Present, then necessary corrections need to be made in the payroll format.

Understanding Days Payable

Days payable consists of all sorts of leaves (Casual/Sick/Earned/Maternity/Special leave/Holidays/Weekly offs, etc.). Normally, an Excel sheet is prepared as a supportive document, concluded by the days payable. Finally, the days payable will be posted into the payroll along with other earnings like OT amount and deductions like advances, ESI, PF, PT, Income Tax, etc. Therefore, please check for details, and if it says Days Present, make the necessary changes.

Thanks,
Kameswarao

You should maintain additional columns to represent leaves taken, LOP, etc., that can give a clear insight into calculating the payroll system.