Respected Seniors,
We are a Product Development Company and have been in the market for 3 years. I have been with the company for 4 months, and up until now, the company has not used Payroll Software. Now, as the number of employees is increasing, they want to implement it.
Salary Slip Components
My question is regarding the content in the Salary Slip. There are 2 components, i.e., components and amount. Now, in the salary slip, if an employee's salary calculation is for 8 days and they receive in hand 9032/-, how do I bifurcate that into components like basic, HRA, etc.?
Regards, Neha
From India, Pune
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2We are a Product Development Company and have been in the market for 3 years. I have been with the company for 4 months, and up until now, the company has not used Payroll Software. Now, as the number of employees is increasing, they want to implement it.
Salary Slip Components
My question is regarding the content in the Salary Slip. There are 2 components, i.e., components and amount. Now, in the salary slip, if an employee's salary calculation is for 8 days and they receive in hand 9032/-, how do I bifurcate that into components like basic, HRA, etc.?
Regards, Neha
From India, Pune
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Dear Neha,
The content of a payslip varies from organization to organization. However, one thing is common: the earnings side and the deductions side, along with the net salary.
Earnings Side
On the earnings side, there will be all components as per the pay structure of the organization. In some months, there may be a special column for any specific payment such as bonuses, LTA, etc.
Deductions Side
On the deductions side, there will be statutory deductions such as PF, ESIC, PTAX, ITAX if any, and loan/advance recovery, etc.
It is expected that your organization is processing payroll with the help of Excel in the absence of any package. There may be a policy for determining daily wages, such as dividing the monthly salary by 30, based on the number of days in the month, or multiplying the monthly salary by 12 and then dividing by 365, or any other method.
Accordingly, all the components on the earnings side will be proportionately reduced for 8 days.
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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The content of a payslip varies from organization to organization. However, one thing is common: the earnings side and the deductions side, along with the net salary.
Earnings Side
On the earnings side, there will be all components as per the pay structure of the organization. In some months, there may be a special column for any specific payment such as bonuses, LTA, etc.
Deductions Side
On the deductions side, there will be statutory deductions such as PF, ESIC, PTAX, ITAX if any, and loan/advance recovery, etc.
It is expected that your organization is processing payroll with the help of Excel in the absence of any package. There may be a policy for determining daily wages, such as dividing the monthly salary by 30, based on the number of days in the month, or multiplying the monthly salary by 12 and then dividing by 365, or any other method.
Accordingly, all the components on the earnings side will be proportionately reduced for 8 days.
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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SALARY SHEET CALCULATION.xls
Salary calculation.doc