Your Salary Sheet is flawes.
There must be some basis of working out things.
I totally disapprove this salary sheet.
From India, Chandigarh
51- Salary Sheet shows the salary for December 2010 with 28 working days and you says it is for February.
- There is no DA component.
- The calculation of Basic & HRA is arbitrary.
- LTA is an intruding entity. (How can it be part of the Wages and paid monthly).
- Moreover, to make the Monthly emoluments to round 25000, you have put every thing that is shot of 25000 into LTA. Just a strange thing to do.
There must be some basis of working out things.
I totally disapprove this salary sheet.
From India, Chandigarh
Dear Dilip,
To be fair to the Company and its employees and if your company is a monthly paid company i.e. including weekly off, then you should:
Salary i.e. basic and allowances
Divide by (Days in a month i.e 28 or 29 or 30 or 31)
multiply by (present days inclusive of weekly off)
In case it is without pay and weekly off comes inbetween the unpaid days then weekly off is to be treated as unpaid days. i.e prefix and suffix of weekly off.
Regards.
Clement
From India, Pune
To be fair to the Company and its employees and if your company is a monthly paid company i.e. including weekly off, then you should:
Salary i.e. basic and allowances
Divide by (Days in a month i.e 28 or 29 or 30 or 31)
multiply by (present days inclusive of weekly off)
In case it is without pay and weekly off comes inbetween the unpaid days then weekly off is to be treated as unpaid days. i.e prefix and suffix of weekly off.
Regards.
Clement
From India, Pune
Hi
Question of day arise in the case of Daily basis payroll system, suppose you are on permanent basis that on what ground you have been paying salary by the company, on Numbers of days worked? No, therefor when calculating for permanent staff calculate 30 days and for daily wages worker consider days as per Factories Act i.e. 26 days or you can consider 26 days for both type of worker
Mitesh Pathak
From India, Ahmadabad
Question of day arise in the case of Daily basis payroll system, suppose you are on permanent basis that on what ground you have been paying salary by the company, on Numbers of days worked? No, therefor when calculating for permanent staff calculate 30 days and for daily wages worker consider days as per Factories Act i.e. 26 days or you can consider 26 days for both type of worker
Mitesh Pathak
From India, Ahmadabad
my dear, how u calculate the salary in other months of the year, the months having 31 days. the calculation of salary generally on 30 days. dosnt matter 28 days or 31 days it is 30 days always. aamir
From Pakistan
From Pakistan
Its purely a company policy - Full month salary is irrespective of the number of days in a month ...it could be 28 or 30 or 31.
If the company is paying on the basis of no.of working days, it is then purely on the basis of the number of working days only.
In India,most of the companies adopt the first method.
Gopi Krishna
HR
From India, Hyderabad
If the company is paying on the basis of no.of working days, it is then purely on the basis of the number of working days only.
In India,most of the companies adopt the first method.
Gopi Krishna
HR
From India, Hyderabad
Dear Dilip,
1. When we pay as "Salary" it is doesn’t matter of monthly days i.e.28, 30 or 31. Because salary is paying on monthly basis not daily basis.
2. If any salaried employee become absent, and accordingly, if you want to deduct his pay, the formula is : monthly sal/monthly colander days ‘x’ present days. (if you considering monthly calendar days for calculation, in this case less calendar days will be more beneficial to employees). As HR practice either you can consider actual calendar days or 30 days for all months)
3. When you pay as per minimum wages act, to get daily wages rate, you have to divide by 26 days to his monthly wages. (here also no question of monthly days)
Thanking you with regards,
Suresh Adav
Asst. Manager : Industrial Relations
NYK Line (I) Ltd
From India, Mumbai
1. When we pay as "Salary" it is doesn’t matter of monthly days i.e.28, 30 or 31. Because salary is paying on monthly basis not daily basis.
2. If any salaried employee become absent, and accordingly, if you want to deduct his pay, the formula is : monthly sal/monthly colander days ‘x’ present days. (if you considering monthly calendar days for calculation, in this case less calendar days will be more beneficial to employees). As HR practice either you can consider actual calendar days or 30 days for all months)
3. When you pay as per minimum wages act, to get daily wages rate, you have to divide by 26 days to his monthly wages. (here also no question of monthly days)
Thanking you with regards,
Suresh Adav
Asst. Manager : Industrial Relations
NYK Line (I) Ltd
From India, Mumbai
don;t confuse salary is always calculated on month days basis i.e Salary rate/month days*payble days. Regards Pawan
From India, Delhi
From India, Delhi
Totally agreed with Pawan since we all are HR Professionals such type of questions certainly are too basic and its creating a mislead.
Mr. Dilip kindly refer your Feb 2010 salary statement otherwise any which has been checked by Labour Inspector during inspection. the answer is with you.
Warms Regards,
Nikhil
Manager HR
From India, Pune
Mr. Dilip kindly refer your Feb 2010 salary statement otherwise any which has been checked by Labour Inspector during inspection. the answer is with you.
Warms Regards,
Nikhil
Manager HR
From India, Pune
Dear All
What has been agreed to be paid as wages or salary under the terms of appointment is the monthly rate of wages or monthly rate of salary. Legally speaking a month consists of thirty days. But some months have thirty one days, February has 28 days and in a particular year it has 29 days. The number of days in a month makes no difference to compute the monthly wages payable to an employee as long as he had not availed any leave on loss of pay or had been absent for any number of days in that particular month. The question of calculating the daily wage arises only when an employee is absent or is on leave on loss of pay on any number of days in a particular month. Therefore in case where the employee had been present for work on all the working days in a month excepting the weekly holidays allowed, he is entitled to the full wages agreed to be paid under the terms of appointment irrespective of the number of days in that month. The Honourable Supreme Court of India had accepted the principle that in the case of a monthly rated worker/employee though the month may comprise of 30 days, he works for 26 days and is paid only for those days. In other words, the monthly rate agreed to be paid is for 26 days of working and not for 30/31/29/28 days of working. In other words, what the Honourable Supreme Court has said that in the case of a monthly rated employee, his daily wage should be arrived at by dividing the monthly rate by 26 and not by the number of days in the month. I think this clarifies the issues raised in this thread.
With regards
From India, Madras
What has been agreed to be paid as wages or salary under the terms of appointment is the monthly rate of wages or monthly rate of salary. Legally speaking a month consists of thirty days. But some months have thirty one days, February has 28 days and in a particular year it has 29 days. The number of days in a month makes no difference to compute the monthly wages payable to an employee as long as he had not availed any leave on loss of pay or had been absent for any number of days in that particular month. The question of calculating the daily wage arises only when an employee is absent or is on leave on loss of pay on any number of days in a particular month. Therefore in case where the employee had been present for work on all the working days in a month excepting the weekly holidays allowed, he is entitled to the full wages agreed to be paid under the terms of appointment irrespective of the number of days in that month. The Honourable Supreme Court of India had accepted the principle that in the case of a monthly rated worker/employee though the month may comprise of 30 days, he works for 26 days and is paid only for those days. In other words, the monthly rate agreed to be paid is for 26 days of working and not for 30/31/29/28 days of working. In other words, what the Honourable Supreme Court has said that in the case of a monthly rated employee, his daily wage should be arrived at by dividing the monthly rate by 26 and not by the number of days in the month. I think this clarifies the issues raised in this thread.
With regards
From India, Madras
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