Dear Mr. Avika Kapoor,
I am working as an HR Assistant, and I would like to request details regarding the following:
Our company has decided to provide an 8% increment on gross salary effective from OCT-2009 to MAR-2010. We adjusted the salaries accordingly starting from Feb-2010.
We now need to calculate arrears for the past 4 months. Could you please clarify whether I should consider the Loss of Pay (LOP) while calculating the arrears for this period?
I am looking forward to your reply.
Regards,
Ragunathan
0994434273
From India, Madras
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1I am working as an HR Assistant, and I would like to request details regarding the following:
Our company has decided to provide an 8% increment on gross salary effective from OCT-2009 to MAR-2010. We adjusted the salaries accordingly starting from Feb-2010.
We now need to calculate arrears for the past 4 months. Could you please clarify whether I should consider the Loss of Pay (LOP) while calculating the arrears for this period?
I am looking forward to your reply.
Regards,
Ragunathan
0994434273
From India, Madras
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Mr. Ragunathan,
You have to consider the attendance of the respective months. For example, if you paid the December 09 salary for 24 days, this increment is applicable for 24 days only and not for 31 days. Is it clear now?
Thank you.
From India, Bangalore
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You have to consider the attendance of the respective months. For example, if you paid the December 09 salary for 24 days, this increment is applicable for 24 days only and not for 31 days. Is it clear now?
Thank you.
From India, Bangalore
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Hi,
It's simple.
On a worksheet in Excel, the eligible amount as per the increased salary should be calculated, called as eligible pay. The first column is for the month, the second column for the basic, the third column for DA, and subsequently one column each for other allowances. The gross eligible pay will be calculated.
Do the same thing for the salary drawn for each month in question. The gross pay drawn will come.
Next, calculate the difference between what was eligible and what amount was drawn, column-wise for each component, and also for the total pay in separate columns. These amounts of difference will indicate arrears.
In other words, the basic pay eligible - what is drawn for all components of pay. The same thing should be done finally from the gross eligible salary, subtract the gross salary drawn for every month.
The last step is to total the columns, and the total for the difference between gross salary eligible - gross salary drawn will give you the arrears of pay when the hike in salary is effected with retrospective effect. However, if any employee avails leave without pay and allowance or avails half-pay leave, etc., the same must be adjusted.
This method will give you item-wise arrears, month-wise arrears, and periodic arrears. The work must be done meticulously.
Dr. Vasudeva Reddy, Hyderabad.
From India, Hyderabad
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It's simple.
On a worksheet in Excel, the eligible amount as per the increased salary should be calculated, called as eligible pay. The first column is for the month, the second column for the basic, the third column for DA, and subsequently one column each for other allowances. The gross eligible pay will be calculated.
Do the same thing for the salary drawn for each month in question. The gross pay drawn will come.
Next, calculate the difference between what was eligible and what amount was drawn, column-wise for each component, and also for the total pay in separate columns. These amounts of difference will indicate arrears.
In other words, the basic pay eligible - what is drawn for all components of pay. The same thing should be done finally from the gross eligible salary, subtract the gross salary drawn for every month.
The last step is to total the columns, and the total for the difference between gross salary eligible - gross salary drawn will give you the arrears of pay when the hike in salary is effected with retrospective effect. However, if any employee avails leave without pay and allowance or avails half-pay leave, etc., the same must be adjusted.
This method will give you item-wise arrears, month-wise arrears, and periodic arrears. The work must be done meticulously.
Dr. Vasudeva Reddy, Hyderabad.
From India, Hyderabad
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Hi I am working as HR Assistant, I want to know the details for Arrears calculation in salary how calculate in Excel format in Augest 09 to March 2010
From India
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From India
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Hi All, Arrears calculation will not stop at Gross . We need to to calculate PF, ESI, Superannation based on Salary Incr and the payment has to be made respectively. Regards, PK
From India, Madras
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From India, Madras
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SALARY SHEET CALCULATION.xls
Salary calculation.doc