For any Pvt. Ltd. or Ltd. companies - Regarding the calculation of monthly salary payment - Whether the monthly gross salary has to be divided by 1) The number of days in that month for which the salary is being paid OR 2) to be divided by 26 days?
Need expert opinion with Rules & Acts.
Please help!!
From India, Calcutta
Acknowledge(0)
Amend(0)
Need expert opinion with Rules & Acts.
Please help!!
From India, Calcutta
Acknowledge(0)Amend(0)
Average daily wages/salary varies from Act to Act and situation to situation. For the purpose of calculation of gratuity payable, the average daily rate of salary is arrived at by dividing the total salary by 26. The salary for the purpose of deciding the compensation payable on retrenchment may be calculated by dividing the monthly salary by 30. There are differences of opinion among the Judges also in this matter. In Trade Wings Ltd Vs Prabhakar Dattaram Phodkar [1993(III) LLJ(Suppl)299 Bom], it was decided that retrenchment compensation u/s 25F should be calculated by dividing the monthly salary by 26 and not by 30. But in a later judgment, [Guru Jambheshwar University, Hisar Vs Dharam Pal (2007) 1 LLJ 1006 (SC)], the average pay under section 25F of I D Act means wages paid in 3 months immediately preceding retrenchment divided by 3, and the principle of 26 days followed for the calculation of gratuity under the Payment of Gratuity Act is not applicable for the determination of retrenchment compensation.
Coming to the wages for calculating overtime wages, it is monthly wages divided by 26. Similarly, for calculating leave encashment, you should take monthly wages divided by 26.
None of the above will be applicable to persons in managerial capacity.
From India, Kannur
Acknowledge(0)Amend(0)
4483Coming to the wages for calculating overtime wages, it is monthly wages divided by 26. Similarly, for calculating leave encashment, you should take monthly wages divided by 26.
None of the above will be applicable to persons in managerial capacity.
From India, Kannur
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of 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 SHEET CALCULATION.xls
Salary calculation.doc