Hello,
I work for a german MNC and I also handle payroll here.
I wanted to know what is the method of calculation of monthly salary. Should the no of days worked effect all the components of the salary or only Basic, HRA & Conv.
The other components of salary in company are Medical allowances, LTA, Professional Devl. A, Special allowances, Education allowances.
Thanks
Sangeeta
From Singapore, Singapore
I work for a german MNC and I also handle payroll here.
I wanted to know what is the method of calculation of monthly salary. Should the no of days worked effect all the components of the salary or only Basic, HRA & Conv.
The other components of salary in company are Medical allowances, LTA, Professional Devl. A, Special allowances, Education allowances.
Thanks
Sangeeta
From Singapore, Singapore
Hi,
I'll illustrate it with an example.
E.g: if gross salary is 10500 which can be bifurcated as
Basic 50% - 5000
DA 20% - 2000
HRA 30% - 3000
Attendance Bonus - 500
Now, as per factories act, salary has to be calculated for 26 days. Therefore,
10500/26 = 403.84 is the per day salary. If there is loss of pay during a month, the gross amount reduces thereby reducing the basic, da, HRA, and the other components also but at the same formula i.e basic-50%,da -205 Hra-30% etc.
Hope this helped.
Thanks,
RK
From India, Madras
3I'll illustrate it with an example.
E.g: if gross salary is 10500 which can be bifurcated as
Basic 50% - 5000
DA 20% - 2000
HRA 30% - 3000
Attendance Bonus - 500
Now, as per factories act, salary has to be calculated for 26 days. Therefore,
10500/26 = 403.84 is the per day salary. If there is loss of pay during a month, the gross amount reduces thereby reducing the basic, da, HRA, and the other components also but at the same formula i.e basic-50%,da -205 Hra-30% etc.
Hope this helped.
Thanks,
RK
From India, Madras
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SALARY SHEET CALCULATION.xls
Salary calculation.doc