Dear friends,
I have one doubt in salary calculation. Kindly clarify for me. We have an ERP Payroll software that divides the salary using the following formula:
Fixed salary / 26 * (26 - LOP days)
This formula does not work properly in months with 27 or 24 working days. I suggested changing the formula to:
Fixed salary / Actual worked days * employee present days.
However, some did not accept this and proposed dividing by 30 days, while others suggested excluding Sundays.
Dear friends, how do you all calculate salaries for your factory? Kindly explain to me.
Best Regards,
Srinivasan
From India, Madras
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1I have one doubt in salary calculation. Kindly clarify for me. We have an ERP Payroll software that divides the salary using the following formula:
Fixed salary / 26 * (26 - LOP days)
This formula does not work properly in months with 27 or 24 working days. I suggested changing the formula to:
Fixed salary / Actual worked days * employee present days.
However, some did not accept this and proposed dividing by 30 days, while others suggested excluding Sundays.
Dear friends, how do you all calculate salaries for your factory? Kindly explain to me.
Best Regards,
Srinivasan
From India, Madras
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Dear Srinivasan, Don’t get confused. Fixed salary / Actual working days of the month X Employee No. of present days.
From India, Madras
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From India, Madras
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Dear Srini, Ask him to written law. 26 days divide is for generally per day salary calculation purpose only such as (EL calculation etc)
From India, Madras
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From India, Madras
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Dear Friends,
Mr. Selvan is correct. As per the act, the formula is: Gross salary / Actual working days of the month X No. of present days (including offs & Leaves with pay). For overtime calculations, we have to consider 26 days.
Thanks & Regards,
Virender Singh.
From India, Delhi
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Mr. Selvan is correct. As per the act, the formula is: Gross salary / Actual working days of the month X No. of present days (including offs & Leaves with pay). For overtime calculations, we have to consider 26 days.
Thanks & Regards,
Virender Singh.
From India, Delhi
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Dear All Salary will be calculated as fixed salary / Actual days in a month(31 r 30)* No.of days worked.. Its the correct way to calculate salary Regards venkatesh
From India, Madras
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From India, Madras
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Dear Mr. Venkat, One employee is leave from Wednesday (March’04) to next saturday(March’13). Will you add int the salary the Sundays of March’8 and 15 or not?
From India, Madras
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From India, Madras
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Dear Selvan,
If the employee is absent from March 4th to March 13th, the leave will be 10 days, including Sunday. If the company policy allows you to calculate Sunday, then 9 days will be the leave days.
Regards,
Venkatesh
Email: jesvenkat@gmail.com
From India, Madras
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If the employee is absent from March 4th to March 13th, the leave will be 10 days, including Sunday. If the company policy allows you to calculate Sunday, then 9 days will be the leave days.
Regards,
Venkatesh
Email: jesvenkat@gmail.com
From India, Madras
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Dear Abhishek,
Salary can be divided into Basic, HRA, Conveyance, Medical Reimbursement, Leave Travel Allowance, Special Allowance, Variable Pay, Mobile Allowance, Education Allowance, Books, and Periodicals. Kindly review and adjust the components as per your company's policies.
Regards, Venkatesh
From India, Madras
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Salary can be divided into Basic, HRA, Conveyance, Medical Reimbursement, Leave Travel Allowance, Special Allowance, Variable Pay, Mobile Allowance, Education Allowance, Books, and Periodicals. Kindly review and adjust the components as per your company's policies.
Regards, Venkatesh
From India, Madras
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Dear Abhishek,
Salary can be broken down into Basic, DA, HRA, Conveyance, and Other Allowances (There are many allowances available). Generally, Basic may be 40% to 60%. DA will be fixed by the Government every year in April as per the Price Index. HRA may be 50% of Basic. The remaining parts may consist of Other allowances. Note: There is no specific rule for salary breakdown. This is a commonly practiced method.
Thank you.
From India, Madras
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Salary can be broken down into Basic, DA, HRA, Conveyance, and Other Allowances (There are many allowances available). Generally, Basic may be 40% to 60%. DA will be fixed by the Government every year in April as per the Price Index. HRA may be 50% of Basic. The remaining parts may consist of Other allowances. Note: There is no specific rule for salary breakdown. This is a commonly practiced method.
Thank you.
From India, Madras
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But, to my mind, if we consider the number of working days of the company to calculate the salary, then the following problem will arise:
1) The number of days in each month keeps changing, i.e., 28, 30, 31; hence, it will be very difficult to calculate the exact salary.
2) The employee is offered a monthly salary of ____, which means that irrespective of the number of working days of the company, he/she will be given a monthly salary as per his attendance for that month.
What I think here is that the number of working days of the company should be fixed at 30 always; hence, the formula would be - (fixed salary / 30) * No. of days worked.
Your comments, please....
Thanks,
Piyush
From India, Varanasi
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1) The number of days in each month keeps changing, i.e., 28, 30, 31; hence, it will be very difficult to calculate the exact salary.
2) The employee is offered a monthly salary of ____, which means that irrespective of the number of working days of the company, he/she will be given a monthly salary as per his attendance for that month.
What I think here is that the number of working days of the company should be fixed at 30 always; hence, the formula would be - (fixed salary / 30) * No. of days worked.
Your comments, please....
Thanks,
Piyush
From India, Varanasi
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Hi,
It's very simple. You can add many heads according to your company requirements, like basic, HRA, city compensatory allowances, washing allowance, children allowance, special allowance, and so on.
Regards,
Ritu Bhatnagar
From India, Delhi
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It's very simple. You can add many heads according to your company requirements, like basic, HRA, city compensatory allowances, washing allowance, children allowance, special allowance, and so on.
Regards,
Ritu Bhatnagar
From India, Delhi
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Dear Srinivassan,
To calculate one day's salary, it is always divided by 30 (normal days in the month), and for an individual, the same can be calculated by multiplying the number of days actually worked.
Vinay
From India, Delhi
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To calculate one day's salary, it is always divided by 30 (normal days in the month), and for an individual, the same can be calculated by multiplying the number of days actually worked.
Vinay
From India, Delhi
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Dear colleagues,
We are a pharma marketing company. Most of our Medical Representatives are covered under the ESI scheme due to salaries below Rs. 10,000. We want to include their daily allowance of Rs. 120 per day in their salary to exceed the Rs. 10,000 limit so that they will be exempt from ESI. The question is, is this possible, and if so, under which head can we add it to the salary? Please reply to me.
Thanks,
T. P. Panda
From India, New Delhi
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We are a pharma marketing company. Most of our Medical Representatives are covered under the ESI scheme due to salaries below Rs. 10,000. We want to include their daily allowance of Rs. 120 per day in their salary to exceed the Rs. 10,000 limit so that they will be exempt from ESI. The question is, is this possible, and if so, under which head can we add it to the salary? Please reply to me.
Thanks,
T. P. Panda
From India, New Delhi
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Dear Abhi,
The breakup normally used is:
(A) Monthly Salary
a. Basic: 49% of total
b. HRA: 40% of the basic
c. Conveyance Allowance: Rs. 800
d. Special Allowance: flexible
Total Monthly Salary: aggregate
Regards,
Vineet
From India, Chandigarh
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The breakup normally used is:
(A) Monthly Salary
a. Basic: 49% of total
b. HRA: 40% of the basic
c. Conveyance Allowance: Rs. 800
d. Special Allowance: flexible
Total Monthly Salary: aggregate
Regards,
Vineet
From India, Chandigarh
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Dear Mr.Virender I would like to clarify from you for the month of Feb How would be overtime calculation is done.The same 26 days is taken in to count. Regards Suman
From India, Hyderabad
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From India, Hyderabad
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hello every buddy, this is sudhir, and i want to know about the earn leaves, that how to make the the E/L Of the employes.
From India, Lucknow
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From India, Lucknow
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Hi,
I agree with Mr. Selvan. For better understanding, I am sending a .doc file which I prepared in reply to auditors' objections on the subject for one of my clients. I hope you find it useful.
Bye,
Puneet Gupta
Labour & Industrial Law Advisor
Ludhiana
From India, Ludhiana
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I agree with Mr. Selvan. For better understanding, I am sending a .doc file which I prepared in reply to auditors' objections on the subject for one of my clients. I hope you find it useful.
Bye,
Puneet Gupta
Labour & Industrial Law Advisor
Ludhiana
From India, Ludhiana
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National Holiday on a Weekly Holiday
If a national holiday falls on a weekly holiday or Sunday, do we need to pay wages to employees for the extra day?
Example:
Suppose in October, the working days are 26, and there are 5 Sundays. If the national holiday 'Gandhi Jayanti' falls on a Sunday, should we pay wages for 26 days or 27 days?
Our SAIL-RSP insists that we have to pay wages for 27 days. We believe they are wrong. In which labor law can we find details to show them?
Please help us!
Regards,
Santosh Gupta
[Phone Number Removed For Privacy-Reasons]
Rourkela
From India, Shillong
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If a national holiday falls on a weekly holiday or Sunday, do we need to pay wages to employees for the extra day?
Example:
Suppose in October, the working days are 26, and there are 5 Sundays. If the national holiday 'Gandhi Jayanti' falls on a Sunday, should we pay wages for 26 days or 27 days?
Our SAIL-RSP insists that we have to pay wages for 27 days. We believe they are wrong. In which labor law can we find details to show them?
Please help us!
Regards,
Santosh Gupta
[Phone Number Removed For Privacy-Reasons]
Rourkela
From India, Shillong
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SALARY SHEET CALCULATION.xls
Salary calculation.doc
Salary & Compensation Guidelines.zip