Dear All, My company had salary calculation dates from 25th to 26th but now they want to shift from 1st to 30th. How to give of previous months 5 days. If added in salary there will be any effect on the ESIC, PF, and PT?
From India, Rajkot
From India, Rajkot
It is only for the purpose of calculation that you are taking the attendance from 26th to 25th day of the following month (I presume it is from 26th to 25th and not 25th to 26th) and the period, wage period remains the same. That is for payment of salary of May 2022, you will take the attendance from April 26th till May 25th. The wage/ salary month is May 2022 only comprising of 30/31 days. The leaves coming after 26th will be considered in the next salary period only.
If you wish to change it from 1st of the month to the last of the month effective from May onwards, count the leaves from 26th April to 30th April in this month and process the salary based on attendance from 1st May. You should have disbursed the salary of April on a presumption that nobody would be taking LOP after 25th April. If anybody has taken LOP, you should have deducted the salary in April payment itself. Normally, absence resulting in LOP only will be considered in the same month and all paid leaves will be considered in the succeeding month. If, on the otherhand, you have not considered the LOP in April, then there is nothing wrong to consider it in May.
Since there is no change in the number of days, there will not happen any difference in PF or ESI contributions. You can continue to put 30/ 31 days for may also.
From India, Kannur
4242If you wish to change it from 1st of the month to the last of the month effective from May onwards, count the leaves from 26th April to 30th April in this month and process the salary based on attendance from 1st May. You should have disbursed the salary of April on a presumption that nobody would be taking LOP after 25th April. If anybody has taken LOP, you should have deducted the salary in April payment itself. Normally, absence resulting in LOP only will be considered in the same month and all paid leaves will be considered in the succeeding month. If, on the otherhand, you have not considered the LOP in April, then there is nothing wrong to consider it in May.
Since there is no change in the number of days, there will not happen any difference in PF or ESI contributions. You can continue to put 30/ 31 days for may also.
From India, Kannur
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SALARY SHEET CALCULATION.xls
Salary calculation.doc