I have recently joined a company. The owner has calculated a salary based on working days only. For example, in February, I joined on the 11th. My salary is 40,000 per month as per the contract. However, I only received 24,000. When I asked, he explained that I only get paid for the actual working days, excluding Saturdays and Sundays. He calculated that I have worked only 13 days in total.
Is this legally correct?
From India, Delhi
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1Is this legally correct?
From India, Delhi
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There are a few ways of calculating, and some organizations follow 26 days, some follow 30 days, and some follow the actual days in a month. Knowing the actual formula as to how they arrived at Rs 24,000 will help in providing advice. However, there does not seem to be a major discrepancy.
From India, Chennai
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From India, Chennai
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Hi, thanks for the update. As per the contract we signed, the remuneration for the role is as follows:
REMUNERATION
Your salary is INR 5.4 lakhs per annum, paid on a monthly basis.
ADMINISTRATION
1) Payment
a) For all staff, the pay month is the calendar month. Salaries are paid by the last working day of the current month.
Now, the way it's being calculated is as follows:
In February, the total working days are from Monday to Friday. You don't get paid for Saturday and Sunday.
So, if I join on 11/02/2016, that is 2 working days for that week, then 15-19/02, 22-26/02, and 29/02, totaling 12 days.
In February, there are a total of 22 working days.
I worked for 12 days.
(45000/22) * 12 = 24545 - 200 (Professional tax).
Doesn't this sound strange? I've been working for over 20 years, and no company calculates like this...
Regards
From India, Delhi
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REMUNERATION
Your salary is INR 5.4 lakhs per annum, paid on a monthly basis.
ADMINISTRATION
1) Payment
a) For all staff, the pay month is the calendar month. Salaries are paid by the last working day of the current month.
Now, the way it's being calculated is as follows:
In February, the total working days are from Monday to Friday. You don't get paid for Saturday and Sunday.
So, if I join on 11/02/2016, that is 2 working days for that week, then 15-19/02, 22-26/02, and 29/02, totaling 12 days.
In February, there are a total of 22 working days.
I worked for 12 days.
(45000/22) * 12 = 24545 - 200 (Professional tax).
Doesn't this sound strange? I've been working for over 20 years, and no company calculates like this...
Regards
From India, Delhi
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Understanding Salary Computation
The Supreme Court long ago declared the proposal for computing the daily rate. You need to divide the monthly salary by 26 to get the daily rate. That rate will be applied to the number of days worked. The Minimum Wages Act also provides the same formula.
So, all weekly offs are to be excluded from the computation of the salary because the rates are absorbed into the daily rate. The procedure followed by your company is similar. They are dividing by 22 instead of 26 because you have 2 weekly offs (30-8). The only problem is that there are 28 days instead of 30 days in that month, so you lose 2 days' salary.
Do you really want to make an issue of a small difference?
From India, Mumbai
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The Supreme Court long ago declared the proposal for computing the daily rate. You need to divide the monthly salary by 26 to get the daily rate. That rate will be applied to the number of days worked. The Minimum Wages Act also provides the same formula.
So, all weekly offs are to be excluded from the computation of the salary because the rates are absorbed into the daily rate. The procedure followed by your company is similar. They are dividing by 22 instead of 26 because you have 2 weekly offs (30-8). The only problem is that there are 28 days instead of 30 days in that month, so you lose 2 days' salary.
Do you really want to make an issue of a small difference?
From India, Mumbai
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Hahahaha, it is very strange to read the above comments. These practices are malpractices by companies happening in large numbers at small firms to save money, which do not adhere to or follow any laws. The ground reality is that the appointed regulators are aware of such things, but their eyes are covered with a good sum of goodies.
Not only this, there are many firms that do not pay salaries on time and have their own standards of attendance systems, ignoring the basic concepts of physical presence. These are clear breaches of the Wages Act and similar regulations.
@hiren6374: It seems you are stuck in the wrong place. You have only two options: either request them to correct it and pay you or leave and find the right place. Unnecessarily frustrating yourself will not benefit you, nor will the complaining part. Hope you understand the practical problems.
From India, New Delhi
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Not only this, there are many firms that do not pay salaries on time and have their own standards of attendance systems, ignoring the basic concepts of physical presence. These are clear breaches of the Wages Act and similar regulations.
@hiren6374: It seems you are stuck in the wrong place. You have only two options: either request them to correct it and pay you or leave and find the right place. Unnecessarily frustrating yourself will not benefit you, nor will the complaining part. Hope you understand the practical problems.
From India, New Delhi
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Harpreet, Please explain what you mean by different standards of attendance ignoring physical presence
From India, Mumbai
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From India, Mumbai
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I have recently started looking after HR activities in my organization, and we are a small social enterprise. Can anyone help me understand the different grades along with the designations they follow? For example, E0 is a grade for a trainee, and E3 is for an officer. I would appreciate it if anyone could help me with a list of these grades.
From India, Mumbai
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From India, Mumbai
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SALARY SHEET CALCULATION.xls
Salary calculation.doc