Payroll Confusion: How Do I Handle Salary Differences for Part-Time Employees?

Dear Sir, 'Greetings of the day.' Some employees' CTC is 65,745, and they are present for 15 days. How will they calculate the PF because 15,000 is fixed at 1,800 PF according to these calculations, resulting in a variation in the CTC?

Example:
CTC - 65,745 (for 30 days)
If any employees are present for 15 days, then:
Basic - 30,000 Basic - 15,000
Allowances - 30,000 Allowances - 15,000
PF - 1,800 PF - 1,800
Bonus - 2,500 Bonus - 1,250
Gratuity - 1,445 Gratuity - 723
Total - 65,745 Total - 33,773

But as per CTC for 15 days, the amount is 65,745/2 = 32,873.
Total difference: 33,773 - 32,873 = 900.

Dear Sir, it is requested that you please give me suggestions on how I can manage the differences in the payroll system.

Regards, Amod Kumar Singh

If any organization processes payroll from CTC, the problem raised in the post is common. Payroll should be based on the monthly gross. Even the gratuity amount in CTC will not be 50% for absenteeism as per the definition of continuous service under the Payment of Gratuity Act.

There is no scope to match it mathematically as the logic is different for different items.

S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions

CTC is not linked to attendance, while the salary drawn depends on actual attendance. PF has to be calculated for the ceiling amount of Rs. 15,000, irrespective of the actual salary being anything more than the ceiling. Similarly, the leave salary, gratuity, bonus, etc., all would be calculated on full salary. So attendance of only 15 days would reduce the salary in proportion, but the same ratio would not apply for CTC.

Dear Sir,

If an employee joins after the age of 58, should we keep him on parole or retain him as a consultant? If placed on parole, what deductions will be made for compliance? Please provide guidance.

Regards, Amod Kumar Singh

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