Greetings all, please clear my doubt about employees' payment. If an employee is absent from work, while calculating their salary, do we deduct only their basic pay, or do we also make deductions in various allowances?
Thank you.
From India, Pune
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7Thank you.
From India, Pune
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When the employee is absent, the entire salary for those days needs to be deducted. Therefore, along with Basic, you will have to reduce the salary for those days in all the salary components. Salary comprises not only Basic Salary but all the salary components together.
Regards,
Ashutosh Thakre
From India, Mumbai
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Regards,
Ashutosh Thakre
From India, Mumbai
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Dear Parul, Agree with Ashutosh that all the salary components shall be proportionately reduced as per the number of working days in a month.
From India, Surat
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From India, Surat
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Thanks for the reply as there was a discussion was going on in the office that in some organisation they make deduction from basic only not from allowances..like hra, conveyance and other allowances.
From India, Pune
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From India, Pune
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Thanks for the reply. There was a discussion going on in the office about organizations that make deductions from basic salary only, not from allowances such as HRA, conveyance, and other allowances.
To those who discussed in your office that in some organizations only basic salary is deducted, ask them if an employee is on LWP/Absent for the entire month, will the employee receive all other salary components besides the salary? You will get a logical answer thereafter.
I have corrected the spelling, grammar, and punctuation errors in the text and ensured proper paragraph formatting. The original meaning and tone of the message have been preserved.
From India, Ahmadabad
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To those who discussed in your office that in some organizations only basic salary is deducted, ask them if an employee is on LWP/Absent for the entire month, will the employee receive all other salary components besides the salary? You will get a logical answer thereafter.
I have corrected the spelling, grammar, and punctuation errors in the text and ensured proper paragraph formatting. The original meaning and tone of the message have been preserved.
From India, Ahmadabad
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Salary & Compensation Guidelines.zip
Employee Salary file - India 2016 AB.xls