Dear Seniors,
we are doing payroll as per the number of days (include Sundays) in month respectively. Now company wants to implement 26 days formula for calculating salary. Thus post implement, we will be processing salaries considering 'working days' as number of days in any particular month.
I want to take your opinion on what should be the right approach to inform employees about it.
a normal mail will do or an individual circulation should be sent to all.
what you suggest based on your experience..
Please help!
From India, New Delhi
12we are doing payroll as per the number of days (include Sundays) in month respectively. Now company wants to implement 26 days formula for calculating salary. Thus post implement, we will be processing salaries considering 'working days' as number of days in any particular month.
I want to take your opinion on what should be the right approach to inform employees about it.
a normal mail will do or an individual circulation should be sent to all.
what you suggest based on your experience..
Please help!
From India, New Delhi
hi
my suggestion is step
1. discussed with u r higher officers
2. call all hods and explain take them in to confidence and ask them to explain all the employees under them
3. if u have union employees discuss with them
4.make a circular and display on notice board and send all mails at last..
regds..
From India, Hyderabad
my suggestion is step
1. discussed with u r higher officers
2. call all hods and explain take them in to confidence and ask them to explain all the employees under them
3. if u have union employees discuss with them
4.make a circular and display on notice board and send all mails at last..
regds..
From India, Hyderabad
Dear friend,
You have asked for the circular. However, have you checked the legality of the decision itself?
You have written that "we are doing payroll as per the number of days (include Sundays) in month respectively. Now company wants to implement 26 days formula for calculating salary. Thus post implement, we will be processing salaries considering 'working days' as number of days in any particular month."
Does the above statement means, you will pay to your employees only for 26 days?
After six days of work, seventh day is weekly off and this weekly off is paid one. You cannot divest this paid off from your employees. Your company must have been registered under factories act or shops and establishment act. Both the acts mandates payment for weekly off also.
Please confirm whether my understanding is correct. Other senior members also may contribute.
Ok...
Dinesh V Divekar
From India, Bangalore
You have asked for the circular. However, have you checked the legality of the decision itself?
You have written that "we are doing payroll as per the number of days (include Sundays) in month respectively. Now company wants to implement 26 days formula for calculating salary. Thus post implement, we will be processing salaries considering 'working days' as number of days in any particular month."
Does the above statement means, you will pay to your employees only for 26 days?
After six days of work, seventh day is weekly off and this weekly off is paid one. You cannot divest this paid off from your employees. Your company must have been registered under factories act or shops and establishment act. Both the acts mandates payment for weekly off also.
Please confirm whether my understanding is correct. Other senior members also may contribute.
Ok...
Dinesh V Divekar
From India, Bangalore
Thanks Srihari and Dinesh,
when we say we 26 days we did not mean to pay only for 26 days. off course their Sunday will also be paid along with. Because people working whole the month will be getting full salary as if your denominator is 26 then your total working days will be 26 also. Thus employee will not lose their pay at all.
it is the same formula being used for converting daily wages into monthly wages under minimum wage policy of government or calculating gratuity and other wages of people.
e.g. if employee's monthly salary is 10 K and working days are 26 in any particular month. in case employee has worked all days then calculation will be as follows:
Salary for that month: 10000/26*26 = 10000
if someone has taken leaves for two days then his working days will be 24, thus calculation will be as follows:
Salary for that month: 10000/26*24.
I hope this helps you understanding this. would appreciate your concerns on this. Please provide your inputs.
what i asked was as it is a change in policy, we need to inform everyone about this..
What is the best approach for informing all employees.
an individual e-mail or circular...
Thanks!
From India, New Delhi
when we say we 26 days we did not mean to pay only for 26 days. off course their Sunday will also be paid along with. Because people working whole the month will be getting full salary as if your denominator is 26 then your total working days will be 26 also. Thus employee will not lose their pay at all.
it is the same formula being used for converting daily wages into monthly wages under minimum wage policy of government or calculating gratuity and other wages of people.
e.g. if employee's monthly salary is 10 K and working days are 26 in any particular month. in case employee has worked all days then calculation will be as follows:
Salary for that month: 10000/26*26 = 10000
if someone has taken leaves for two days then his working days will be 24, thus calculation will be as follows:
Salary for that month: 10000/26*24.
I hope this helps you understanding this. would appreciate your concerns on this. Please provide your inputs.
what i asked was as it is a change in policy, we need to inform everyone about this..
What is the best approach for informing all employees.
an individual e-mail or circular...
Thanks!
From India, New Delhi
This is the correct and legal way of computation of salary (26 working days)
So you simply need to issue a circular informing the employees of how the salary is being computed and clarifying that the sundays are being included in the salary working. you may mention the relevant supreme court judgement or the section of the act under which this is being done.
From India, Mumbai
So you simply need to issue a circular informing the employees of how the salary is being computed and clarifying that the sundays are being included in the salary working. you may mention the relevant supreme court judgement or the section of the act under which this is being done.
From India, Mumbai
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.
Job Work-outwork employees.docx