Struggling with Salary Calculations for Partial Month Work? Let's Figure It Out Together

Hello, we are going to use one of the HRMS and facing an issue in salary calculation as mentioned below in detail. Kindly help us with your answers. We have BASIC, MA, CONV. ALLOWANCE, PROFESSIONAL ALLOWANCE, AND SPECIAL ALLOWANCE. We usually divide the monthly salary based on the number of days in a particular month.

Salary Calculation Details

Where Basic is 40% of gross, HRA 40% of basic, MA - Fixed (1250), Con. Allowance - Fixed (1600), Professional Allowance - Fixed (800), and Special Allowance - the remaining amount.

Example Calculation

Emp 1 = Salary is 34,000, and he has worked for 15.5 days out of 30 days. Then how can we calculate the below elements? Monthly Gross, Net Pay, No. of Pay Days, Deduction, Basic, HRA, MA, Conv., Professional, Special, Birthday bonus (2000/-). P.S: We are not deducting any amount from an employee's salary.

Thank you.

Location: Vadodara, India

To calculate the various components of Emp 1's salary based on the provided information, follow these steps:

Step-by-Step Calculation:

1. Calculate Basic Salary:
- Basic Salary = 40% of Gross Salary
- Basic Salary = 0.4 * 34000 = 13600

2. Calculate HRA (House Rent Allowance):
- HRA = 40% of Basic Salary
- HRA = 0.4 * 13600 = 5440

3. Calculate MA (Medical Allowance) and Conveyance Allowance:
- MA is fixed at 1250
- Conveyance Allowance is fixed at 1600

4. Calculate Professional Allowance:
- Professional Allowance is fixed at 800

5. Calculate Special Allowance:
- Special Allowance = Gross Salary - (Basic + HRA + MA + Conveyance + Professional)
- Special Allowance = 34000 - (13600 + 5440 + 1250 + 1600 + 800) = Remaining Amount

6. Calculate Monthly Gross Salary:
- Monthly Gross Salary = Basic + HRA + MA + Conveyance + Professional + Special Allowance

7. Calculate Net Pay:
- Net Pay = Monthly Gross Salary / Total Days in the month * Number of days worked
- Net Pay = (Monthly Gross Salary / 30) * 15.5

8. Calculate Number of Pay Days:
- Number of Pay Days = Days worked in the month

9. Calculate Birthday Bonus:
- Birthday Bonus is a fixed amount of 2000

By following these steps, you can accurately calculate Emp 1's salary components based on the provided details.