Dear All,
In my organization if for an employee there is LOP his gross salary is first calculated after deducting LOP amount.
For Example : As per Offer Letter if an individuals salary is 10000 and there is lop of 2 days
Gross Salary = 10,000
= 10,000/30*no: of days
=666.66
=10,000 - 666.66
Net Gross After LOP=9333.34
Based on 9333.34 only other salary components are calculated.
My doubt here is whether the salary components are calculated based on 10,000 or 9333.34.
Please clarify immediately.
From India
In my organization if for an employee there is LOP his gross salary is first calculated after deducting LOP amount.
For Example : As per Offer Letter if an individuals salary is 10000 and there is lop of 2 days
Gross Salary = 10,000
= 10,000/30*no: of days
=666.66
=10,000 - 666.66
Net Gross After LOP=9333.34
Based on 9333.34 only other salary components are calculated.
My doubt here is whether the salary components are calculated based on 10,000 or 9333.34.
Please clarify immediately.
From India
9 views & no comments. Please send in your comments. Whether salary components, PF & ESI will be calculated based upon the Gross net salary after deducting LOP. Please send in your views immediately.
From India
From India
hi,
not sure if i understand the issue completely but here is what i have to say:
The salary gets paid as a lump sum amount on monthly basis (typically). The net payout to the employee would be 10k - LOP amount (which would reflect on the -ve side of payslip) assuming there is no tax and/or other deductions.
From tax calculation point of view, the components would be treated in full that is there is no impact on the deduction e.g. on HRA, Basic etc however, the overall taxable income will be reduced to the extent of LOP deduction.
hope this helps.
regards
Pavel Chopra
not sure if i understand the issue completely but here is what i have to say:
The salary gets paid as a lump sum amount on monthly basis (typically). The net payout to the employee would be 10k - LOP amount (which would reflect on the -ve side of payslip) assuming there is no tax and/or other deductions.
From tax calculation point of view, the components would be treated in full that is there is no impact on the deduction e.g. on HRA, Basic etc however, the overall taxable income will be reduced to the extent of LOP deduction.
hope this helps.
regards
Pavel Chopra
Dear Friends, can any one make it clear what chopra is saying. which rule has to be followed. Please clarify whether lop will be deducted from gross or net salary
From India
From India
Why two contradictory statements are being made here with regard to the calculation of LOP. can anybody jus say which one is the correct procedure.
From India
From India
Dear friends,
Salary components will be calculated after deduction only.
In the same example, if the person who is getting 10,000 has PF&other benifits, all those will be calculated on the amount (10000-LOP amt).
SRI
From India, Pune
Salary components will be calculated after deduction only.
In the same example, if the person who is getting 10,000 has PF&other benifits, all those will be calculated on the amount (10000-LOP amt).
SRI
From India, Pune
Dear Umama,
I agree with what SRI and GURU have quoted, you need to take Gross - LOP amount only to calculate rest of the components. So without any fear you can follow the same rule. Hope it is completely clear for you now......
Regards
Amith R.
From India, Bangalore
16I agree with what SRI and GURU have quoted, you need to take Gross - LOP amount only to calculate rest of the components. So without any fear you can follow the same rule. Hope it is completely clear for you now......
Regards
Amith R.
From India, Bangalore
Dear friends, Please refer the excel attached. You need to only change the number of LOP days, the salary components will get calculated.
From India
From India
A B C
P.M Salary LOP for 1 days (A / 30 ) Net Earning (A-B)
Basic 6000.00 200.00 5800.00
HRA 2400.00 80.00 2320.00
Conveyance 1400.00 46.67 1353.33
Education 200.00 6.67 193.33
10000.00 333.33 9666.67
The division of per month salary by no. of days whether standard 30 days or the number of days in a month (31, 30, 28) depends on the policy of the company.
for all the statutory deductions, the basis will be column "C"
P.M Salary LOP for 1 days (A / 30 ) Net Earning (A-B)
Basic 6000.00 200.00 5800.00
HRA 2400.00 80.00 2320.00
Conveyance 1400.00 46.67 1353.33
Education 200.00 6.67 193.33
10000.00 333.33 9666.67
The division of per month salary by no. of days whether standard 30 days or the number of days in a month (31, 30, 28) depends on the policy of the company.
for all the statutory deductions, the basis will be column "C"
Hi,
The salary calculations has to be like
Suppose for 10k gross salary ( For 30 Days) you have a break up of the salary like
BAsic - 4000
HRA - 2000
SA - 3000
Conveyance & mobile allowance - 1000
Then for two days the loss of pay should be calculated like
Loss of pay ( Sum of the below mentioned components)
Basic loss of pay ( 4000/30)*2
HRA ( 2000/30)*2
SA ( 3000/30)*2
Conveyance & mobile allowance ( 1000/30)*2
Hope this clarifies all ur doubts.
Thanks
Barada
From India, Madras
The salary calculations has to be like
Suppose for 10k gross salary ( For 30 Days) you have a break up of the salary like
BAsic - 4000
HRA - 2000
SA - 3000
Conveyance & mobile allowance - 1000
Then for two days the loss of pay should be calculated like
Loss of pay ( Sum of the below mentioned components)
Basic loss of pay ( 4000/30)*2
HRA ( 2000/30)*2
SA ( 3000/30)*2
Conveyance & mobile allowance ( 1000/30)*2
Hope this clarifies all ur doubts.
Thanks
Barada
From India, Madras
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