I work for a German MNC and I also handle payroll here. I wanted to know what is the method of calculation of monthly salary. Should the number of days worked affect all the components of the salary or only Basic, HRA, and Conv? The other components of salary in the company are Medical allowances, LTA, Professional Development, Special allowances, and Education allowances.
Thanks,
Sangeeta
From Singapore, Singapore
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Thanks,
Sangeeta
From Singapore, Singapore
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Sangeetha, LOP will effect other components as well PFA file for your ref
From India, Bangalore
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From India, Bangalore
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I'll illustrate it with an example. For instance, if the gross salary is 10,500, it can be bifurcated as follows:
- Basic 50% - 5,000
- DA 20% - 2,000
- HRA 30% - 3,000
- Attendance Bonus - 500
According to the Factories Act, the salary has to be calculated for 26 days. Therefore, 10,500/26 = 403.84 is the per-day salary. If there is a loss of pay during a month, the gross amount reduces, thereby affecting the basic, DA, HRA, and other components based on the same formula (i.e., Basic - 50%, DA - 20%, HRA - 30%, etc.).
Hope this explanation helps.
Thanks,
RK
From India, Madras
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4- Basic 50% - 5,000
- DA 20% - 2,000
- HRA 30% - 3,000
- Attendance Bonus - 500
According to the Factories Act, the salary has to be calculated for 26 days. Therefore, 10,500/26 = 403.84 is the per-day salary. If there is a loss of pay during a month, the gross amount reduces, thereby affecting the basic, DA, HRA, and other components based on the same formula (i.e., Basic - 50%, DA - 20%, HRA - 30%, etc.).
Hope this explanation helps.
Thanks,
RK
From India, Madras
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SALARY SHEET CALCULATION.xls
Salary calculation.doc