Dear friends,
I have one doubt in salary calculation. Kindly clarify for me. We have an ERP Payroll software that divides the salary using the following formula:
Fixed salary / 26 * (26 - LOP days)
This formula does not work properly in months with 27 or 24 working days. I suggested changing the formula to:
Fixed salary / Actual worked days * employee present days.
However, some did not accept this and proposed dividing by 30 days, while others suggested excluding Sundays.
Dear friends, how do you all calculate salaries for your factory? Kindly explain to me.
Best Regards,
Srinivasan
From India, Madras
Acknowledge(0)
Amend(0)
1I have one doubt in salary calculation. Kindly clarify for me. We have an ERP Payroll software that divides the salary using the following formula:
Fixed salary / 26 * (26 - LOP days)
This formula does not work properly in months with 27 or 24 working days. I suggested changing the formula to:
Fixed salary / Actual worked days * employee present days.
However, some did not accept this and proposed dividing by 30 days, while others suggested excluding Sundays.
Dear friends, how do you all calculate salaries for your factory? Kindly explain to me.
Best Regards,
Srinivasan
From India, Madras
Acknowledge(0)Amend(0)
Dear Srinivasan, Don’t get confused. Fixed salary / Actual working days of the month X Employee No. of present days.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Srini, Ask him to written law. 26 days divide is for generally per day salary calculation purpose only such as (EL calculation etc)
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Friends,
Mr. Selvan is correct. As per the act, the formula is: Gross salary / Actual working days of the month X No. of present days (including offs & Leaves with pay). For overtime calculations, we have to consider 26 days.
Thanks & Regards,
Virender Singh.
From India, Delhi
Acknowledge(0)Amend(0)
Mr. Selvan is correct. As per the act, the formula is: Gross salary / Actual working days of the month X No. of present days (including offs & Leaves with pay). For overtime calculations, we have to consider 26 days.
Thanks & Regards,
Virender Singh.
From India, Delhi
Acknowledge(0)Amend(0)
Dear All Salary will be calculated as fixed salary / Actual days in a month(31 r 30)* No.of days worked.. Its the correct way to calculate salary Regards venkatesh
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Mr. Venkat, One employee is leave from Wednesday (March’04) to next saturday(March’13). Will you add int the salary the Sundays of March’8 and 15 or not?
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Selvan,
If the employee is absent from March 4th to March 13th, the leave will be 10 days, including Sunday. If the company policy allows you to calculate Sunday, then 9 days will be the leave days.
Regards,
Venkatesh
Email: jesvenkat@gmail.com
From India, Madras
Acknowledge(0)Amend(0)
If the employee is absent from March 4th to March 13th, the leave will be 10 days, including Sunday. If the company policy allows you to calculate Sunday, then 9 days will be the leave days.
Regards,
Venkatesh
Email: jesvenkat@gmail.com
From India, Madras
Acknowledge(0)Amend(0)
Dear Abhishek,
Salary can be divided into Basic, HRA, Conveyance, Medical Reimbursement, Leave Travel Allowance, Special Allowance, Variable Pay, Mobile Allowance, Education Allowance, Books, and Periodicals. Kindly review and adjust the components as per your company's policies.
Regards, Venkatesh
From India, Madras
Acknowledge(0)Amend(0)
Salary can be divided into Basic, HRA, Conveyance, Medical Reimbursement, Leave Travel Allowance, Special Allowance, Variable Pay, Mobile Allowance, Education Allowance, Books, and Periodicals. Kindly review and adjust the components as per your company's policies.
Regards, Venkatesh
From India, Madras
Acknowledge(0)Amend(0)
Dear Abhishek,
Salary can be broken down into Basic, DA, HRA, Conveyance, and Other Allowances (There are many allowances available). Generally, Basic may be 40% to 60%. DA will be fixed by the Government every year in April as per the Price Index. HRA may be 50% of Basic. The remaining parts may consist of Other allowances. Note: There is no specific rule for salary breakdown. This is a commonly practiced method.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)
Salary can be broken down into Basic, DA, HRA, Conveyance, and Other Allowances (There are many allowances available). Generally, Basic may be 40% to 60%. DA will be fixed by the Government every year in April as per the Price Index. HRA may be 50% of Basic. The remaining parts may consist of Other allowances. Note: There is no specific rule for salary breakdown. This is a commonly practiced method.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)
But, to my mind, if we consider the number of working days of the company to calculate the salary, then the following problem will arise:
1) The number of days in each month keeps changing, i.e., 28, 30, 31; hence, it will be very difficult to calculate the exact salary.
2) The employee is offered a monthly salary of ____, which means that irrespective of the number of working days of the company, he/she will be given a monthly salary as per his attendance for that month.
What I think here is that the number of working days of the company should be fixed at 30 always; hence, the formula would be - (fixed salary / 30) * No. of days worked.
Your comments, please....
Thanks,
Piyush
From India, Varanasi
Acknowledge(0)Amend(0)
1) The number of days in each month keeps changing, i.e., 28, 30, 31; hence, it will be very difficult to calculate the exact salary.
2) The employee is offered a monthly salary of ____, which means that irrespective of the number of working days of the company, he/she will be given a monthly salary as per his attendance for that month.
What I think here is that the number of working days of the company should be fixed at 30 always; hence, the formula would be - (fixed salary / 30) * No. of days worked.
Your comments, please....
Thanks,
Piyush
From India, Varanasi
Acknowledge(0)Amend(0)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.