Attendance calculation for Payroll cycle 24th to 25th - If someone joins on the 26th of any month then shall we pay him for that month?

rini90
Hi, My company pay cycle is 24th to 25th each month, therefore, depending on that I have the following queries
If calendar days is 31 but in my calculation, it comes 30 days due to applying the above-mentioned pay cycle then as per the statutory how many days payment I should calculate
If someone joins on the 26th of any month then shall we pay him for that month or it will be paid with the next month's salary since our pay cycle is 24th to 25th.
rkn61
In order to sort out such anomalies, you can change your pay period /attendance period
from 26th of the previous month to 25th of the current month , with the approval of
management . This should be the ideal pay cycle.
KK!HR
The pay cycle has to be 25th of the previous month to the 24th of the succeeding month. This provides a week's time to make salary calculations. But when are you making payment of wages, has to be paid within seven days where the number of employees is less than 1000 otherwise within ten days of the end of wage period? (Refer Section 5 of the Payment of Wages Act 1936)
Now, with the type of easier software available you may reassess whether you need the one week gap to make such calculation. Another method could be to take actual attendance upto 25th and presume continued attendance/absence for the next week. If there is any excess payment then it is deducted in the next salary or if any further payment is needed, it can be made by supplementary payment within the extended time as applicable.
hr-revolution
Dear Rini
Please note one important finding of your case, it it not just about the salary of the employee joined after the cut-off date of payroll.
As in this case you will run his/her payroll in next month along with the arrear of previous month salary, once you process the arrear salary then you have to deposit the PF also for the employee.
While you deposit the arrear PF of the employee at the end of FY you will get the notice from PF office for depositing the interest & damages on the arrear PF deposited by the company.
It ill incur the extra liability on the company.
To avoid such situation it is advised you to freeze your joining after the cutoff date of payroll i.e. 25th if every month. You can hire new employee on 1st of the next month.
If it is not possible then be ready for paying the interest & damages of the arrear salary processed.
For further clarity please feel free to write us @ [Login to view]
amitinvites
Hi,

I am working in Manufacturing Organization and employee strength is more than 1000.

I want to change the payroll cycle form 1st to 30th to 25th to 24th. pl suggest what are the points to take care.

Thank you,
Amit Sharma
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