We are calculating salary based on 30 days per month irrespective of month days. My question is if one day LOP is there, how will be the deduction
From India, Bengaluru
From India, Bengaluru
Consider total gross salary/30 days so you will get one day wage. Deduct number of LOP days from that daily wages
From India, Bangalore
638From India, Bangalore
You can work out Simple average per day wages (gross salary divided by no of calendar days of the respective month say 28, 29,30 & 31 respectively) and multiply it for no.of days of LOP for deduction purpose.
From India, Bangalore
From India, Bangalore
If you are calculating salary for 30 days basis, then you should divide gross pay by 30 days to work out one day pay and LOP should be calculated accordingly. Else as suggested above, you will divide gross salary by 28,29,30 or 31 days basis and work out one day salary for the purpose of LOP.
R R Kapoor
Vadodara
From India, Vadodara
R R Kapoor
Vadodara
From India, Vadodara
Employee salary should be divided by 26 then you will get per day salary not divided by 28, 29, 30 & 31. There is an obligation to provide weekly off day rest to the employee after working 6 days (48 hrs per week). That means you are paying weekly day off rest.
From India, Chennai
From India, Chennai
It is always considered that the salary payable to an Employee is for 28 days if it's February or 29 days in case of leap year, 30 days for April, June, September & November and 31 days for Jan, March, May, July, August,October & December. Then find the working days deducting weekly off days, (in general 4 or 5 weekly of days appear). So the calculation is {(Gross ÷28,29,30or31) × 26 or 27}.
From India, Mumbai
From India, Mumbai
Dear colleagues,
Adopting a fixed day denominator (whatever, 26,28,29,30,31) commonly for all the months will result in certain anomaly. Say for e.g. for a gross salary of Rs.18000 p.m.(let us assume for July'24) if the employee avail 15 days LOP the avg.pd. salary works out to Rs.692.31 pd.(18000/26=692.31) Hence deduction of salary for 15 days LOP will be Rs.10384.65(692.31 x 15). Assuming the same avg.pay, then for the balance 15 days of duty this employee will have to be paid another 692.31 x 16 = 11076.96 is it not. Thus his combined gross will work out to Rs.21461.61, will it be correct when his normal gross is Rs.18000 ? At the same time extending same analogy for the other part of 15 days' avg pay gets modified restricting it overall month's gross which is not logical. We have to remember the employer has to be paid weekly off days even when he's not present physically and his gross remain the same irrespective the no.of days in a calendar month(s). Therefore it is logical to arrive at the avg.pd salary for the purpose of LOP deduction, divided by the respective month's calendar days.
However for the purpose of gratuity payment the act itself stipulates the avg.pd salary should be arrived at by dividing the gross by 26 days, no issue.
From India, Bangalore
Adopting a fixed day denominator (whatever, 26,28,29,30,31) commonly for all the months will result in certain anomaly. Say for e.g. for a gross salary of Rs.18000 p.m.(let us assume for July'24) if the employee avail 15 days LOP the avg.pd. salary works out to Rs.692.31 pd.(18000/26=692.31) Hence deduction of salary for 15 days LOP will be Rs.10384.65(692.31 x 15). Assuming the same avg.pay, then for the balance 15 days of duty this employee will have to be paid another 692.31 x 16 = 11076.96 is it not. Thus his combined gross will work out to Rs.21461.61, will it be correct when his normal gross is Rs.18000 ? At the same time extending same analogy for the other part of 15 days' avg pay gets modified restricting it overall month's gross which is not logical. We have to remember the employer has to be paid weekly off days even when he's not present physically and his gross remain the same irrespective the no.of days in a calendar month(s). Therefore it is logical to arrive at the avg.pd salary for the purpose of LOP deduction, divided by the respective month's calendar days.
However for the purpose of gratuity payment the act itself stipulates the avg.pd salary should be arrived at by dividing the gross by 26 days, no issue.
From India, Bangalore
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SALARY SHEET CALCULATION.xls
Salary calculation.doc