Hi All,
I am working in an MNC with a 5-day workweek. In our organization, if an employee takes unpaid leave in a month, the amount for their leave deduction is calculated based on the number of working days, not the total number of days in the month (i.e., 30 or 31 days). With a 5-day workweek, the number of working days is 22, which may further decrease if there are any holidays in that month. Consequently, the amount deducted for such leave can be substantial, which is a concern for employees.
Is there a specific rule for this type of calculation? Can anyone provide guidance on this matter?
Thanks and Regards,
Simple Bajaj
From India, Delhi
Acknowledge(0)
Amend(0)
1I am working in an MNC with a 5-day workweek. In our organization, if an employee takes unpaid leave in a month, the amount for their leave deduction is calculated based on the number of working days, not the total number of days in the month (i.e., 30 or 31 days). With a 5-day workweek, the number of working days is 22, which may further decrease if there are any holidays in that month. Consequently, the amount deducted for such leave can be substantial, which is a concern for employees.
Is there a specific rule for this type of calculation? Can anyone provide guidance on this matter?
Thanks and Regards,
Simple Bajaj
From India, Delhi
Acknowledge(0)Amend(0)
Dear Member,
I also agree with Mrugen Vyas. Usually, it is calculated by total salary divided by the number of days in a month multiplied by the number of days an employee came in a month or was on leave.
Regards,
Shreya Parikh
HR Executive
From India, Pune
Acknowledge(0)Amend(0)
I also agree with Mrugen Vyas. Usually, it is calculated by total salary divided by the number of days in a month multiplied by the number of days an employee came in a month or was on leave.
Regards,
Shreya Parikh
HR Executive
From India, Pune
Acknowledge(0)Amend(0)
Dear All, Thanx for your reply. I would still request you to please mention any provision as per law which mentions this Calculation, If ANy Regards Simple Bajaj
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Member,
Normal deductions are as follows:
1. PT
2. ESIC
3. PF
4. TDS
These deductions are as per your salary; you can find the slabs for all of these on Google. Other deductions depend on the firm and its operations, including the number of employees working and other factors.
Regards,
Shreya Parikh
(HR)
From India, Pune
Acknowledge(0)Amend(0)
Normal deductions are as follows:
1. PT
2. ESIC
3. PF
4. TDS
These deductions are as per your salary; you can find the slabs for all of these on Google. Other deductions depend on the firm and its operations, including the number of employees working and other factors.
Regards,
Shreya Parikh
(HR)
From India, Pune
Acknowledge(0)Amend(0)
Hi Ms. Parikh, My query is whether calculation of deduction of leaves on the basis of number of working days in a month is mentioned in any law.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
There is an old Supreme Court decision in a gratuity case that says the daily rate needs to be computed by dividing the monthly salary by 26. That is the benchmark now followed by courts. Even minimum wage laws follow the same rule. The daily rate does not change with a change in the number of working days or the number of holidays declared for a month. Even for February, you still use the same method of dividing by 26.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi If u are aware of that Supreme Court ruling, can u please share that... So even the amount for Unpaid leave is also calculated on number of working days?.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
It is quoted in every book and even in bare acts on gratuity Google for jeevanlal ltd v/s appalet authority authority under gratuity act.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Bajaj
If your company is governed by the Delhi Shops & Commercial Establishment Act and your employees are entitled to wages for weekly offs or rest days under Section 16 or 17, you need to calculate daily wages by dividing the monthly salary by the actual calendar days of the month or 30 (as per the General Clauses Act).
The Supreme Court case Banerjee referred to is Digvijay Woollen Mills Ltd v. Mahendraprataprai Buch (1980 AIR 1944, 1981 SCR (1) 64).
VARGHESE MATHEW
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
If your company is governed by the Delhi Shops & Commercial Establishment Act and your employees are entitled to wages for weekly offs or rest days under Section 16 or 17, you need to calculate daily wages by dividing the monthly salary by the actual calendar days of the month or 30 (as per the General Clauses Act).
The Supreme Court case Banerjee referred to is Digvijay Woollen Mills Ltd v. Mahendraprataprai Buch (1980 AIR 1944, 1981 SCR (1) 64).
VARGHESE MATHEW
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
As a new HR professional in a software company, I would like to clarify whether if an employee takes a half-day leave on Saturday afternoon and then takes another half-day leave on Monday morning, will Sunday be considered as leave as well?
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Salary Break up - After deduction.xls