Struggling with Salary Calculation for Partial Month: How Do You Break It Down?

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.

Components of Salary

We have BASIC, MA, CONV. ALLOWANCE, PROFESSIONAL ALLOWANCE, AND SPECIAL ALLOWANCE. We usually divide the monthly salary based on the days in a particular month.

Where Basic is 40% of the gross, HRA is 40% of the basic, MA is fixed at 1250, Con. Allowance is fixed at 1600, Professional Allowance is fixed at 800, and Special Allowance is the remaining amount.

Salary Calculation Example

Emp 1 = Salary is 34,000, and he has worked for 15.5 days out of 30 days. Then how can the below elements be calculated? Monthly Gross, Net Pay, No. of Pay Days, Deduction, Basic, HRA, MA, Conv., Professional, Special, Birthday Bonus (2000/-).

P.S: We are not having any kind of deduction from an employee's salary. Location: Vadodara, India

Tags: Country-India, special allowance, salary calculation, salary breakup, payroll management, payroll attendance, City-India-Vadodara

To calculate the salary components based on the number of days worked, follow these steps:

- Calculate Basic, HRA, and Special Allowance:
- Basic: 40% of the gross salary
- HRA: 40% of Basic
- Special Allowance: Remaining amount after Basic and HRA are calculated

- Calculate Fixed Allowances:
- MA (Medical Allowance): Fixed at 1250
- Conveyance Allowance: Fixed at 1600
- Professional Allowance: Fixed at 800

- Calculate Monthly Gross Salary:
- Add Basic, HRA, MA, Conveyance, Professional, and Special Allowance to get the Monthly Gross Salary.

- Calculate Daily Salary:
- Divide the Monthly Gross Salary by the total number of days in the month to get the Daily Salary.

- Calculate Employee's Salary:
- For Emp 1 who worked 15.5 days out of 30:
- Monthly Gross Salary: Calculate as per the above steps
- Net Pay: (Daily Salary * Number of Days Worked) + Birthday Bonus
- No. of Pay Days: Number of days worked
- Deduction: No deductions specified
- Basic, HRA, MA, Conveyance, Professional, Special: Calculate as per the above steps

By following these steps, you can accurately calculate the salary components based on the number of days worked.