Dear all,
I've been requested by the company to calculate employees' salary with 240 hour per month, which I don't know whether it is permissible by law, please kindly advise, thank you.
Example,
Method A
Basic salary: Rs. 30,000 per month
Attendence: 1 day absence in Feb
Salary for Feb: 30,000 / 240 hour * (240 - 8 ) = 29,000
Attendence: 1 day absence in Mar
Salary for Feb: 30,000 / 240 hour * (240 - 8 ) = 29,000
The past experience told me that it should be:
Method B
Basic salary: Rs. 30,000 per month
Attendence: 1 day absence in Feb
Salary for Feb: 30,000 * 27 / 28 days = 28,929
Attendence: 1 day absence in Mar
Salary for Feb: 30,000 * 30 / 31 days = 29,032
So which one is legally compliant? or both method okay? Thank you.
From India, Gurgaon
I've been requested by the company to calculate employees' salary with 240 hour per month, which I don't know whether it is permissible by law, please kindly advise, thank you.
Example,
Method A
Basic salary: Rs. 30,000 per month
Attendence: 1 day absence in Feb
Salary for Feb: 30,000 / 240 hour * (240 - 8 ) = 29,000
Attendence: 1 day absence in Mar
Salary for Feb: 30,000 / 240 hour * (240 - 8 ) = 29,000
The past experience told me that it should be:
Method B
Basic salary: Rs. 30,000 per month
Attendence: 1 day absence in Feb
Salary for Feb: 30,000 * 27 / 28 days = 28,929
Attendence: 1 day absence in Mar
Salary for Feb: 30,000 * 30 / 31 days = 29,032
So which one is legally compliant? or both method okay? Thank you.
From India, Gurgaon
You may find people working throughout the month without availing weekly off in non-registered firms or elsewhere. But this is illegal in any organized business setup.
Weekly off is a right and is legally protected. Certain types of leaves and holidays are also rights as per prevailing labor laws. So it is illegal to reduce salary on the basis of absent days. You may need to refer the concerned labor laws/consult your Legal Advisor.
From India, Bangalore
192Weekly off is a right and is legally protected. Certain types of leaves and holidays are also rights as per prevailing labor laws. So it is illegal to reduce salary on the basis of absent days. You may need to refer the concerned labor laws/consult your Legal Advisor.
From India, Bangalore
Basic Salary: Rs 30,000 per Month
Attendance: 1 day absence in Feb
Step 1: Basic Salary / No of days of the particular month: 30,000/27 = 1111
Step 2: Per day salary/ No of days of the particular month
Then Salary will be: 1111*27 = 29997
(Note if Feb 27, then divide by 27; if 28 then divide by 28)
D. Justin
From India, Madras
Attendance: 1 day absence in Feb
Step 1: Basic Salary / No of days of the particular month: 30,000/27 = 1111
Step 2: Per day salary/ No of days of the particular month
Then Salary will be: 1111*27 = 29997
(Note if Feb 27, then divide by 27; if 28 then divide by 28)
D. Justin
From India, Madras
Hi justin,
February has either 28 or 29 days in a year. I haven't heard if it has 27 days??????
correct me if I am wrong.
Secondly the method you have elaborated here is half part ok. In the second step the days salary is to be multiplied with no of working days and not with total no. of days of the month. step 1 is fine, wherein one has to divide the salary with total no. of days of the month.
From India, Delhi
February has either 28 or 29 days in a year. I haven't heard if it has 27 days??????
correct me if I am wrong.
Secondly the method you have elaborated here is half part ok. In the second step the days salary is to be multiplied with no of working days and not with total no. of days of the month. step 1 is fine, wherein one has to divide the salary with total no. of days of the month.
From India, Delhi
Dear SLCO,
As far the calculation of salary is concerned, it is to be calculated based on no. of days of a particular month and not by working hrs. Calculating salaries with working hrs is not practiced in an organized establishment and is illegal to be practiced, as it means that your organization does not give paid Sundays to its employees. This is an unfair practice in the organization, as quoted by Consultme here.
It should be calculated as follows:
Basic salary = Rs.30000/-
Case - 1
No. of Days in Feb = 28 days, then 1 day salary is = 30000/28 = 1071/-
No. of leaves = 1 day, then the salary would be = 1071X27 = 28917/-
Case - 2
No. of Days in March = 31 days, then 1 day salary is = 30000/31 = 968/-
No. of leaves = 1 day, then the salary would be = 968X30 = 29040/-
I hope the things are clear now.
From India, Delhi
As far the calculation of salary is concerned, it is to be calculated based on no. of days of a particular month and not by working hrs. Calculating salaries with working hrs is not practiced in an organized establishment and is illegal to be practiced, as it means that your organization does not give paid Sundays to its employees. This is an unfair practice in the organization, as quoted by Consultme here.
It should be calculated as follows:
Basic salary = Rs.30000/-
Case - 1
No. of Days in Feb = 28 days, then 1 day salary is = 30000/28 = 1071/-
No. of leaves = 1 day, then the salary would be = 1071X27 = 28917/-
Case - 2
No. of Days in March = 31 days, then 1 day salary is = 30000/31 = 968/-
No. of leaves = 1 day, then the salary would be = 968X30 = 29040/-
I hope the things are clear now.
From India, Delhi
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SALARY SHEET CALCULATION.xls
Salary calculation.doc