Dear sir, i want to know that will basic salary change every month? if yes then reply hw it is possible?
From India, Lucknow
From India, Lucknow
Dear Asheesh,
Salary is fixed for a month ( 30 / 31 days ) and is payable for employees on prorata basis on number of days worked in a month.
Thus all components of your salary are payable equal to the number of days you work in that month. for example if your salary looks like this :
Basic : 3500
HRA : 1750
Other : 750
----------------
Total : 6000
------------
You will divide the salary by the no. of days in a month and pay as per the attendance. The deduction will also happen as per attendance.
Hop this explains how basic will differ, based on the number of days put.
Please note that Basic amount is fixed for a period and can not be reduced by any employer during the term of employment, it can only increase.
Regards,
Shridhar
From India, Mumbai
3Salary is fixed for a month ( 30 / 31 days ) and is payable for employees on prorata basis on number of days worked in a month.
Thus all components of your salary are payable equal to the number of days you work in that month. for example if your salary looks like this :
Basic : 3500
HRA : 1750
Other : 750
----------------
Total : 6000
------------
You will divide the salary by the no. of days in a month and pay as per the attendance. The deduction will also happen as per attendance.
Hop this explains how basic will differ, based on the number of days put.
Please note that Basic amount is fixed for a period and can not be reduced by any employer during the term of employment, it can only increase.
Regards,
Shridhar
From India, Mumbai
Hi..
One doubt..
Gross salary- 9000 per month
Basic salary- 5850
others-3150
present days-12 days in the month of October
now my senior calculated salary as-
October salary PF Amount deduction Net salary payable
(9000*12/31)=3483.87 3483*65%*12%=271.67 3483-271.67=3211.33
Is it right method? as first he calculated salary for present days i.e. basic salary and then on that basic he deducted PF.
Please reply soon...
From India, Thana
One doubt..
Gross salary- 9000 per month
Basic salary- 5850
others-3150
present days-12 days in the month of October
now my senior calculated salary as-
October salary PF Amount deduction Net salary payable
(9000*12/31)=3483.87 3483*65%*12%=271.67 3483-271.67=3211.33
Is it right method? as first he calculated salary for present days i.e. basic salary and then on that basic he deducted PF.
Please reply soon...
From India, Thana
Hi Sapna Ji Calculation of salary & deduction on basic as per number of days is OK.Salary/Basic is being calculated on payable days i.e present, paid leave & w.off/holidays.
From India, New Delhi
From India, New Delhi
Dear All,
To my best of knowledge employees/labours are getting their compensation on daily or monthly basis.
In daily basis there is no classification of basic or any allowance. So when a person is getting basic salary means getting the monthly compensation.
Now coming back to the question asked that can the basic salary changed every month?
Answer is NO if there is not absence.
If a person has attended office without any absence during a particular month, as per prescribed policy of the respective organisation. Normally it happens 8 hr per day if not specified otherwise.
On the other hand if an employee had some absence then deduction happens in total compensation and all other allowances got changed along with basic.
From India, New Delhi
To my best of knowledge employees/labours are getting their compensation on daily or monthly basis.
In daily basis there is no classification of basic or any allowance. So when a person is getting basic salary means getting the monthly compensation.
Now coming back to the question asked that can the basic salary changed every month?
Answer is NO if there is not absence.
If a person has attended office without any absence during a particular month, as per prescribed policy of the respective organisation. Normally it happens 8 hr per day if not specified otherwise.
On the other hand if an employee had some absence then deduction happens in total compensation and all other allowances got changed along with basic.
From India, New Delhi
The calculations should be :
Basic : 9000/- per day = 290.32
Total working days = 12 thus 12 x 290.32 = 34833.87
Deduction of PF @ 12% = 418.06
Total Basic payable = 3065.80/-
All other components will be calculated for 12 days in similar fashion.
Regards,
Shridhar
From India, Mumbai
Basic : 9000/- per day = 290.32
Total working days = 12 thus 12 x 290.32 = 34833.87
Deduction of PF @ 12% = 418.06
Total Basic payable = 3065.80/-
All other components will be calculated for 12 days in similar fashion.
Regards,
Shridhar
From India, Mumbai
Dear Sapna,
as per the data you have given, it is clear that the basic salary is 65% of the Gross salary and the no. of days present is 12 out of 31 days.
hence the gross salary will be = 9000*12/31 = 3486.87 or rounded to 3484
and basic can be calculated as = 3484*65% = 2264.6 or rounded to 2265
or = 5850*12/31 = 2264.51 rounded to 2265.
pf is calculated on the basic, hence = 2265*12% = 271.8 rounded to 272
or = (5850*12/31)*12%
or = (9000*12/31)*65%*12%
any of the relations can be used as they will lead to same result and are logically correct also. it is like getting a product of 12 by either multiplting 3*4, or 2*6, or 1*12, or 2*2*3. in all cases you will get the result 12.
I hope that it is clear now.
From India, Delhi
as per the data you have given, it is clear that the basic salary is 65% of the Gross salary and the no. of days present is 12 out of 31 days.
hence the gross salary will be = 9000*12/31 = 3486.87 or rounded to 3484
and basic can be calculated as = 3484*65% = 2264.6 or rounded to 2265
or = 5850*12/31 = 2264.51 rounded to 2265.
pf is calculated on the basic, hence = 2265*12% = 271.8 rounded to 272
or = (5850*12/31)*12%
or = (9000*12/31)*65%*12%
any of the relations can be used as they will lead to same result and are logically correct also. it is like getting a product of 12 by either multiplting 3*4, or 2*6, or 1*12, or 2*2*3. in all cases you will get the result 12.
I hope that it is clear now.
From India, Delhi
In most cases especially in India, Basic salary is constant in a month.
It is however paossible for Basic pay to be variable. An example is of an organization which pays the monthly salary based on the working days in a month and not by the calendar days. The net effect in a calendar year will be the same, but the salary will vary month to month.
Regards,
R.Narayanan
From India, Madras
It is however paossible for Basic pay to be variable. An example is of an organization which pays the monthly salary based on the working days in a month and not by the calendar days. The net effect in a calendar year will be the same, but the salary will vary month to month.
Regards,
R.Narayanan
From India, Madras
Hi
Thanks for your suggestions and calculation..
@ pradyumna_atri - you are saying that whatever calculation i did is right...but did you check that above your thread "shridharb2004" this guy is calculating differently..so i am again confused which method is correct or both r correct...
From India, Thana
Thanks for your suggestions and calculation..
@ pradyumna_atri - you are saying that whatever calculation i did is right...but did you check that above your thread "shridharb2004" this guy is calculating differently..so i am again confused which method is correct or both r correct...
From India, Thana
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Change in Salary structure & Nomenclature.do c
EPFO_Notificati on for Online Basic Information Change.pdf