Salary Calculation Dilemma: How Do You Manually Calculate for a Mid-February Start?

I have a query about salary calculation. If an employee joins on 16 Feb, how do you calculate it manually? In February, there are 28 days.

You have to calculate the salary for 28 days, i.e., if the month has 28 days, that is the total working days. Then, his 28-day salary is his actual salary, which is provided to him on his annexure, and you have to pay him for 13 days' salary. This can be calculated using the formula: (Total Salary/Total days) * Working Days.

Salary Calculation Formula

Salary x (number of working days / number of calendar days)

You can calculate the same on the basis of calendar days, i.e., 28 days. As the employee joined on 16th Feb, the calculation will be as follows:

Monthly Salary * Number of days worked (13) / 28

In the same way, you calculate the salary for an employee who joined on January 1st and did not work from February 1st to February 15th.

As per my knowledge, in the case of February, you need to consider 30 days for calculating the monthly salary. This is because if you compare the monthly salary for months with 30 days and 31 days, then the February salary will be higher than the actual salary. Therefore, to determine the actual monthly salary, you need to consider 30 days for calculating the February salary. I also advise you to seek help from your legal advisor and consider their point of view.

Thank you.

Do we also deduct HRA on the basis of that? If a person is entitled to Rs. 16,000 a month and he joins on the 15th, shall we pay him Rs. 8,000 as HRA, and how do we show that on a salary slip?