Dear Seniors, we are a new company and need clarification on salary calculation for July 2017. We issued a joining letter for July 1, 2017, without noticing that July 1 and 2 were Saturday and Sunday (leave for our company). At the last minute, we realized this and asked the candidates to join on July 3, 2017 (Monday). At the end of July, we issued a salary for 29 days (Annual Income/12 x 29 (total days calculated from joining) / 31 (total number of days in a month)). Is this the correct way to calculate the salary? One of the employees is demanding a calculation for the whole month since the joining letter mentions July 1, 2017, and he is losing 2 days' salary. Please advise whether my calculation is correct.
Thank you in advance!
Warm Regards,
Sudhakaran
[Phone Number Removed For Privacy-Reasons]
From India, Chennai
Acknowledge(0)
Amend(0)
Thank you in advance!
Warm Regards,
Sudhakaran
[Phone Number Removed For Privacy-Reasons]
From India, Chennai
Acknowledge(0)Amend(0)
In this situation, it's essential to consider the legal and fair approach to salary calculation. Here are the key points to address the query effectively:
Understanding Salary Calculation Discrepancy:
- The joining letter mentioning July 1, 2017, and the actual joining date being July 3, 2017, has led to a difference in the perception of the number of working days for salary calculation.
Legal Perspective and Best Practices:
- According to Indian labor laws and standard HR practices, salary should ideally be calculated based on the actual joining date when an employee starts performing duties and contributing to the organization.
- While the joining letter may specify an earlier date, the practical approach aligns with the actual commencement of work to ensure fairness and accuracy in salary disbursement.
Addressing Employee Concern:
- It's crucial to communicate transparently with the employee who is raising the concern about the salary calculation discrepancy.
- Explain the rationale behind the calculation based on the actual working days in the month of July, considering July 1 and 2 were non-working days for the company.
- Reiterate the importance of following standard practices and legal compliance in determining salary payments.
Resolution and Moving Forward:
- To resolve the issue amicably, consider discussing the matter with the concerned employee and providing clarity on the calculation methodology.
- Emphasize the company's commitment to fair practices and adherence to labor regulations to ensure mutual understanding and trust between the employer and the employee.
By aligning the salary calculation with the actual working days in July, based on the employee's start date, you can uphold fairness and transparency in remuneration practices within your organization.
From India, Gurugram
Acknowledge(0)Amend(0)
54Understanding Salary Calculation Discrepancy:
- The joining letter mentioning July 1, 2017, and the actual joining date being July 3, 2017, has led to a difference in the perception of the number of working days for salary calculation.
Legal Perspective and Best Practices:
- According to Indian labor laws and standard HR practices, salary should ideally be calculated based on the actual joining date when an employee starts performing duties and contributing to the organization.
- While the joining letter may specify an earlier date, the practical approach aligns with the actual commencement of work to ensure fairness and accuracy in salary disbursement.
Addressing Employee Concern:
- It's crucial to communicate transparently with the employee who is raising the concern about the salary calculation discrepancy.
- Explain the rationale behind the calculation based on the actual working days in the month of July, considering July 1 and 2 were non-working days for the company.
- Reiterate the importance of following standard practices and legal compliance in determining salary payments.
Resolution and Moving Forward:
- To resolve the issue amicably, consider discussing the matter with the concerned employee and providing clarity on the calculation methodology.
- Emphasize the company's commitment to fair practices and adherence to labor regulations to ensure mutual understanding and trust between the employer and the employee.
By aligning the salary calculation with the actual working days in July, based on the employee's start date, you can uphold fairness and transparency in remuneration practices within your organization.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY SHEET CALCULATION.xls
Salary calculation.doc