Hi Everybody,
Please clarify this doubt of mine and suggest a suitable solution:
1. If an employee has Loss Of Pay (let's take 4 days) for a particular month, can the deductions be from the BASIC SALARY? Can an organization deduct the money from the basic salary?
2. Does the basic salary change for that month?
What does the standard HR POLICY say on this issue?
Regards,
Rivti
From India, Delhi
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6Please clarify this doubt of mine and suggest a suitable solution:
1. If an employee has Loss Of Pay (let's take 4 days) for a particular month, can the deductions be from the BASIC SALARY? Can an organization deduct the money from the basic salary?
2. Does the basic salary change for that month?
What does the standard HR POLICY say on this issue?
Regards,
Rivti
From India, Delhi
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Hi Rivti, Yes it changes. If it is loss of pay from the earnings den the whole salary structure wil changes. Even PF also. Regards, aru
From India, Bangalore
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From India, Bangalore
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Hey,
Definitely, Yaar, the salary is calculated based on the number of days worked and leaves allowed, excluding Loss of Pay.
For example:
Basic = 4000
Others = 2000
For 30 days, it will be paid in full without any change. For 25 days, it will be calculated as 4000/30*25 = 3333 and 2000/30*25 = 1666.
Regards,
Deepak. M
From India, Mumbai
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Definitely, Yaar, the salary is calculated based on the number of days worked and leaves allowed, excluding Loss of Pay.
For example:
Basic = 4000
Others = 2000
For 30 days, it will be paid in full without any change. For 25 days, it will be calculated as 4000/30*25 = 3333 and 2000/30*25 = 1666.
Regards,
Deepak. M
From India, Mumbai
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Yes Rivti, it is the basic fundamental of any payroll accounting : Basic is part of total pay and loss of pay means deduction in the basic salary .There is no doubt in this. Anu :D :D :D
From India, Calcutta
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From India, Calcutta
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Hi! In addition to the adjustment of basic pay you will also have to consider proportionate adjustment in benefits like earned leaves, end of service benefits etc. Regards Salman
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Hi Rivti,
The loss of pay would apply to all components of the salary, thus the basic pay would be affected. If the person is eligible under the PR Act, then the PF for that month would also be affected, and the ESI, again, if applicable.
Hope this resolves your query.
Best regards,
Ajay
From India, New Delhi
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The loss of pay would apply to all components of the salary, thus the basic pay would be affected. If the person is eligible under the PR Act, then the PF for that month would also be affected, and the ESI, again, if applicable.
Hope this resolves your query.
Best regards,
Ajay
From India, New Delhi
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Yes got ur point the loss of pay has affected my DA ,HRA,PF along with BASIC also. Thx... Regards, Rivti
From India, Delhi
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From India, Delhi
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Hi,
Yes, all components of your salary will change. For example, the basic salary is 5000/-. The loss of days is 5. Based on the above, your basic salary and other components of the salary would be calculated as follows: 5000/30*25= 4167. All other components of the salary (mostly in %) will be calculated based on Rs. 4167/-, not on Rs. 5000/-. 😢
From India, Chandigarh
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Yes, all components of your salary will change. For example, the basic salary is 5000/-. The loss of days is 5. Based on the above, your basic salary and other components of the salary would be calculated as follows: 5000/30*25= 4167. All other components of the salary (mostly in %) will be calculated based on Rs. 4167/-, not on Rs. 5000/-. 😢
From India, Chandigarh
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Hi Rivti, Definately it will change, coz the whole salary structure depends on the number of working days. Regards, Vivek.
From India, Meerut
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From India, Meerut
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As per practice followed, the allowances are allowed at a certain percentage of the basic salary. Once the basic salary is changed for a month, it is obvious that the other allowances, which are allowed as a percentage, will also be affected. However, the allowances, if any, which are allowed as a slab are not affected.
Deepak Thukral
Chandigarh
From India, Chandigarh
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Deepak Thukral
Chandigarh
From India, Chandigarh
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Hello Rivti,
Employers can deduct wages according to the list given in Section 7 of the Payment of Wages Act, 1936. As per Section 7 Subsection 2 (b), deductions for absence from duty can be made from the wages of employed persons.
As per Section 9 of the Payment of Wages Act, 1936:
1) Deductions may be made under Clause (b) of Subsection (2) of Section 7 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.
2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage period for which the deduction is made a larger proportion than the period for which he was absent bears to the total period, within such wage period, during which, by the terms of his employment, he was required to work.
So it is clear that you can always deduct the wages/salary accordingly, and the basic salary is a main component of the salary structure.
From India, Lucknow
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Employers can deduct wages according to the list given in Section 7 of the Payment of Wages Act, 1936. As per Section 7 Subsection 2 (b), deductions for absence from duty can be made from the wages of employed persons.
As per Section 9 of the Payment of Wages Act, 1936:
1) Deductions may be made under Clause (b) of Subsection (2) of Section 7 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.
2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage period for which the deduction is made a larger proportion than the period for which he was absent bears to the total period, within such wage period, during which, by the terms of his employment, he was required to work.
So it is clear that you can always deduct the wages/salary accordingly, and the basic salary is a main component of the salary structure.
From India, Lucknow
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Hi,
It will affect the entire structure of your salary.
Basic - 2000
HRA - 1000
Conv - 1000
Total - 4000
4 days deduction and the month is June with 30 days.
Basic - 1733 (PF 12% of Basic)
HRA - 866
4 days deduction and the month is July with 31 days.
Basic - 1741 (PF 12% of Basic)
Thanks,
Girija
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It will affect the entire structure of your salary.
Basic - 2000
HRA - 1000
Conv - 1000
Total - 4000
4 days deduction and the month is June with 30 days.
Basic - 1733 (PF 12% of Basic)
HRA - 866
4 days deduction and the month is July with 31 days.
Basic - 1741 (PF 12% of Basic)
Thanks,
Girija
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