We are calculating salary based on 30 days per month irrespective of month days. My question is if one day LOP is there, how will be the deduction
From India, Bengaluru
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From India, Bengaluru
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Consider total gross salary/30 days so you will get one day wage. Deduct number of LOP days from that daily wages
From India, Bangalore
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653From India, Bangalore
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You can work out the simple average per day wages (gross salary divided by the number of calendar days of the respective month, such as 28, 29, 30, or 31) and multiply it by the number of days of LOP for deduction purposes.
From India, Bangalore
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From India, Bangalore
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If you are calculating salary on a 30-day basis, then you should divide the gross pay by 30 days to determine the daily pay, and Loss of Pay (LOP) should be calculated accordingly. Alternatively, as mentioned earlier, you can divide the gross salary by 28, 29, 30, or 31 days and calculate the daily salary for LOP purposes.
Regards, R R Kapoor
Vadodara
From India, Vadodara
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Regards, R R Kapoor
Vadodara
From India, Vadodara
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Calculating Daily Salary
Employee salary should be divided by 26 to calculate the daily salary, rather than dividing it by 28, 29, 30, or 31. It is essential to provide employees with a weekly day off after they have worked for six consecutive days (48 hours per week). This means that you are compensating for the weekly day off.
From India, Chennai
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Employee salary should be divided by 26 to calculate the daily salary, rather than dividing it by 28, 29, 30, or 31. It is essential to provide employees with a weekly day off after they have worked for six consecutive days (48 hours per week). This means that you are compensating for the weekly day off.
From India, Chennai
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Salary Calculation Based on Days in a Month
It is always considered that the salary payable to an employee is for 28 days if it's February, or 29 days in case of a leap year, 30 days for April, June, September, and November, and 31 days for January, March, May, July, August, October, and December. Then find the working days by deducting weekly off days (in general, 4 or 5 weekly off days appear). So the calculation is {(Gross ÷ 28, 29, 30, or 31) × 26 or 27}.
From India, Mumbai
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It is always considered that the salary payable to an employee is for 28 days if it's February, or 29 days in case of a leap year, 30 days for April, June, September, and November, and 31 days for January, March, May, July, August, October, and December. Then find the working days by deducting weekly off days (in general, 4 or 5 weekly off days appear). So the calculation is {(Gross ÷ 28, 29, 30, or 31) × 26 or 27}.
From India, Mumbai
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Dear colleagues,
Fixed day denominator anomaly
Adopting a fixed day denominator (e.g., 26, 28, 29, 30, 31) commonly for all the months will result in a certain anomaly. For example, for a gross salary of Rs. 18,000 per month (let us assume for July '24), if the employee avails 15 days of LOP, the average per day salary works out to Rs. 692.31 per day (18000/26 = 692.31). Hence, the deduction of salary for 15 days of LOP will be Rs. 10,384.65 (692.31 x 15). Assuming the same average pay, then for the balance 15 days of duty, this employee will have to be paid another 692.31 x 16 = 11,076.96. Thus, his combined gross will work out to Rs. 21,461.61. Will it be correct when his normal gross is Rs. 18,000?
Logical approach for LOP deduction
At the same time, extending the same analogy for the other part of 15 days' average pay gets modified, restricting it to the overall month's gross, which is not logical. We have to remember the employer has to be paid weekly off days even when he's not present physically, and his gross remains the same irrespective of the number of days in a calendar month(s). Therefore, it is logical to arrive at the average per day salary for the purpose of LOP deduction, divided by the respective month's calendar days.
Gratuity payment calculation
However, for the purpose of gratuity payment, the act itself stipulates the average per day salary should be arrived at by dividing the gross by 26 days, no issue.
From India, Bangalore
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Fixed day denominator anomaly
Adopting a fixed day denominator (e.g., 26, 28, 29, 30, 31) commonly for all the months will result in a certain anomaly. For example, for a gross salary of Rs. 18,000 per month (let us assume for July '24), if the employee avails 15 days of LOP, the average per day salary works out to Rs. 692.31 per day (18000/26 = 692.31). Hence, the deduction of salary for 15 days of LOP will be Rs. 10,384.65 (692.31 x 15). Assuming the same average pay, then for the balance 15 days of duty, this employee will have to be paid another 692.31 x 16 = 11,076.96. Thus, his combined gross will work out to Rs. 21,461.61. Will it be correct when his normal gross is Rs. 18,000?
Logical approach for LOP deduction
At the same time, extending the same analogy for the other part of 15 days' average pay gets modified, restricting it to the overall month's gross, which is not logical. We have to remember the employer has to be paid weekly off days even when he's not present physically, and his gross remains the same irrespective of the number of days in a calendar month(s). Therefore, it is logical to arrive at the average per day salary for the purpose of LOP deduction, divided by the respective month's calendar days.
Gratuity payment calculation
However, for the purpose of gratuity payment, the act itself stipulates the average per day salary should be arrived at by dividing the gross by 26 days, no issue.
From India, Bangalore
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