Salary calculation base is 30 days. how to deduct on day LOP

We are calculating salary based on 30 days per month irrespective of month days.

My question is, if one day of Leave Without Pay (LOP) is taken, how will the deduction be made?

Consider the total gross salary divided by 30 days to determine the daily wage. Subtract the number of Leave Without Pay (LOP) days from that daily wage.

Thank you!

You can work out the simple average per day wages (gross salary divided by the number of calendar days of the respective month, such as 28, 29, 30, or 31) and multiply it by the number of days of LOP for deduction purposes.

If you are calculating salary on a 30-day basis, then you should divide the gross pay by 30 days to determine the daily pay, and Loss of Pay (LOP) should be calculated accordingly. Alternatively, as mentioned earlier, you can divide the gross salary by 28, 29, 30, or 31 days and calculate the daily salary for LOP purposes.

R R Kapoor
Vadodara

Employee salary should be divided by 26 to calculate the daily salary, rather than dividing it by 28, 29, 30, or 31. It is essential to provide employees with a weekly day off after they have worked for six consecutive days (48 hours per week). This means that you are compensating for the weekly day off.

It is always considered that the salary payable to an employee is for 28 days if it's February or 29 days in case of a leap year, 30 days for April, June, September, and November, and 31 days for January, March, May, July, August, October, and December. Then find the working days by deducting weekly off days (in general, 4 or 5 weekly off days appear). So the calculation is {(Gross ÷ 28, 29, 30, or 31) × 26 or 27}.

Dear colleagues,

Adopting a fixed day denominator (e.g., 26, 28, 29, 30, 31) commonly for all the months will result in a certain anomaly. For example, for a gross salary of Rs. 18,000 per month (let us assume for July '24), if the employee avails 15 days of LOP, the average per day salary works out to Rs. 692.31 per day (18000/26 = 692.31). Hence, the deduction of salary for 15 days of LOP will be Rs. 10,384.65 (692.31 x 15). Assuming the same average pay, then for the balance 15 days of duty, this employee will have to be paid another 692.31 x 16 = 11,076.96. Thus, his combined gross will work out to Rs. 21,461.61. Will it be correct when his normal gross is Rs. 18,000?

At the same time, extending the same analogy for the other part of 15 days' average pay gets modified, restricting it to the overall month's gross, which is not logical. We have to remember the employer has to be paid weekly off days even when he's not present physically, and his gross remains the same irrespective of the number of days in a calendar month(s). Therefore, it is logical to arrive at the average per day salary for the purpose of LOP deduction, divided by the respective month's calendar days.

However, for the purpose of gratuity payment, the act itself stipulates the average per day salary should be arrived at by dividing the gross by 26 days, no issue.