Can you please help me by telling that that as per Indian Laws the salary of an employee should be calculated by taking into account 30 or 31 days?
From India, Gurgaon
From India, Gurgaon
Wages of daily rated employee will be calculated on the number of days worked without reference to the days in the month. The variable Dearness Allowance for daily rated employees is also calculated on the number of working days. At the same time, for monthly rated employees there will be a monthly salary and the daily average of the same for any purpose, say for deducting leave without pay, is calculated by dividing the monthly salary by 30 without reference to 31 or 28/29 (February). However, for calculating overtime wages, the daily average for the purpose of arriving at hourly rate is calculated by dividing monthly salary by 26 since it will be more beneficial to the employees.
Under the Payment of Gratuity Act, the average salary for finding out the gratuity is arrived at by dividing monthly salary by 26.
For determining the retrenchment compensation payable under the Industrial Disputes Act, the monthly salary is divided by 30 and not by 26.
Therefore, different Acts have given different treatment with regard to divisor. However, 31 and 28/29 are not commonly used.
Regards,
Madhu.T.K
From India, Kannur
4240Under the Payment of Gratuity Act, the average salary for finding out the gratuity is arrived at by dividing monthly salary by 26.
For determining the retrenchment compensation payable under the Industrial Disputes Act, the monthly salary is divided by 30 and not by 26.
Therefore, different Acts have given different treatment with regard to divisor. However, 31 and 28/29 are not commonly used.
Regards,
Madhu.T.K
From India, Kannur
Dear member,
Depending upon the terms & conditions of the employee, they are classified as daily rated, weekly rated. fortnightly rated or monthly rated.
the calculation of wages are also done accordingly.
If your case is related to a monthly paid employee,then there is no question of 30 or 31 days as you have agreed to pay him certain amount per month and month means a calender month extended from28 days to 31 days, i. e. the total available days in the particular month In case of full attenedance he is entitled to get the same monthly wages.But in case of absence without pay on some working days deduction may be made on proportionate basis. e.g. if a monthly rated employee is without pay for 3 days in Feb.,Mar. & Apr. then the wages may be calculated as follows:-
Feb- Monthly rate/28x25. Mar-Monthly rate/31x28.Apr-Monthly rate/30x27.
You may post any particular case in details. if not satisfied.
regards
From India, Delhi
Depending upon the terms & conditions of the employee, they are classified as daily rated, weekly rated. fortnightly rated or monthly rated.
the calculation of wages are also done accordingly.
If your case is related to a monthly paid employee,then there is no question of 30 or 31 days as you have agreed to pay him certain amount per month and month means a calender month extended from28 days to 31 days, i. e. the total available days in the particular month In case of full attenedance he is entitled to get the same monthly wages.But in case of absence without pay on some working days deduction may be made on proportionate basis. e.g. if a monthly rated employee is without pay for 3 days in Feb.,Mar. & Apr. then the wages may be calculated as follows:-
Feb- Monthly rate/28x25. Mar-Monthly rate/31x28.Apr-Monthly rate/30x27.
You may post any particular case in details. if not satisfied.
regards
From India, Delhi
Dear All,
Please tell me if there are leaves without pay or salary is deducted as a result of late entry or half days then how Leaves should be deducted along with the monthly salary and on what basis . Is there a particular formula. and also confused between whether the salary should be computed on the basis of calendar days in a month or the no. of working days.
Looking forward to best possible cost effective methods.
Thanks & Regards
Vidhi
From India, Delhi
Please tell me if there are leaves without pay or salary is deducted as a result of late entry or half days then how Leaves should be deducted along with the monthly salary and on what basis . Is there a particular formula. and also confused between whether the salary should be computed on the basis of calendar days in a month or the no. of working days.
Looking forward to best possible cost effective methods.
Thanks & Regards
Vidhi
From India, Delhi
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SALARY SHEET CALCULATION.xls