Paying Salaries on the 1st: How Do You Manage the End-of-Month Rush?

If any company wants to pay salaries to employees on the first of every month, what are the things that need to be considered and how? I have a lot of confusion as if I pay on the 1st, I have to be ready with everything on the 29th or 30th, but then how is it possible? Please guide.

Dear Komal,

You can make payment of wages for actual attendance from the 1st to the 20th of each month. For the 21st to the 31st, you can consider notional presence for everyone and proceed with the payroll run, disbursing wages on the 1st of the subsequent month.

In the coming month, you can adjust any unauthorized leave (absence for which leave has not been applied/sanctioned).

Hope this works for you.

Shailesh Parikh
99 98 97 10 65
Vadodara

For payroll purposes, consider the month from the 26th to the 25th of the following month. This will allow for making payments on the 1st of the following month.