The employees monthly salary calculating 26 days or 31 days because the working days only 26 in a month but one month is a 30 days what is the format to calculate salary?
From India, Chennai
1From India, Chennai
It depends from company to company is all that I would like to suggest. However,
As per the laws, there should be 1 rest day after a maximum of 6 days of work in a week. So by default, Sunday becomes a paid holiday.
Most companies practice a 30-day process irrespective of the months having 31 or 28/29 days.
Many companies take the number of days in the month like 31 for jan, 28/29 for feb, 31 for march, 30 for april and so on.
30-days feature
You do not have to change the formula every month depending on the no. of days in the month.
The salary per day for any month would be the same and hence calculation becomes easy.
Monthly days feature:
Though the no. of days in a month changes from month to month basis, and hence salary per day changes month on month.
Salary per day for the month of the feb is the highest as it has the lowest number of days in the month.
Salary per day for rest of months have minor changes because of 30/31 days.
Best part is that you tell your employees that all the sundays and the holidays are paid ones.
I hope this was able to clear you and give you better ideas on which approach to consider.
All the best.
From India, Mumbai
As per the laws, there should be 1 rest day after a maximum of 6 days of work in a week. So by default, Sunday becomes a paid holiday.
Most companies practice a 30-day process irrespective of the months having 31 or 28/29 days.
Many companies take the number of days in the month like 31 for jan, 28/29 for feb, 31 for march, 30 for april and so on.
30-days feature
You do not have to change the formula every month depending on the no. of days in the month.
The salary per day for any month would be the same and hence calculation becomes easy.
Monthly days feature:
Though the no. of days in a month changes from month to month basis, and hence salary per day changes month on month.
Salary per day for the month of the feb is the highest as it has the lowest number of days in the month.
Salary per day for rest of months have minor changes because of 30/31 days.
Best part is that you tell your employees that all the sundays and the holidays are paid ones.
I hope this was able to clear you and give you better ideas on which approach to consider.
All the best.
From India, Mumbai
Hi,
For calculating salary,we must consider 30 days irrespective of any month.
We consider 26 days for Gratuity & Leave Encashment calculation.
For Gratuity:
[ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
For Leave Encashment:
Basic Salary per month * Nos of Earned Leaves left / 26
For calculating salary,we must consider 30 days irrespective of any month.
We consider 26 days for Gratuity & Leave Encashment calculation.
For Gratuity:
[ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
For Leave Encashment:
Basic Salary per month * Nos of Earned Leaves left / 26
HI
Instead of 30 days for all month better to calculate for 30.44
The calculation is as below
Days in a year 365 X 3 yeras
Days in leaf year 366
Total Days in 4 years =1098
Calculation 1098 ( Days) / 4 (Years) / 12 (months)=30.44
Regards
M.Suresh
From India, Madras
Instead of 30 days for all month better to calculate for 30.44
The calculation is as below
Days in a year 365 X 3 yeras
Days in leaf year 366
Total Days in 4 years =1098
Calculation 1098 ( Days) / 4 (Years) / 12 (months)=30.44
Regards
M.Suresh
From India, Madras
Hi Suresh, Sorry..Your post is more confusing and also don’t think its relevant. In fact I have never heard of such calculations when it matters to salary. Kindly re-check!
Hi,
IT should be consider as per months days like January -31, Feb-28/29, April-30, this days includes weekly off.
In case of Absent or LOP reduce the no of days.
Thanks & Regards,
Shashidhara.GK
HR Manager
From India, Bangalore
IT should be consider as per months days like January -31, Feb-28/29, April-30, this days includes weekly off.
In case of Absent or LOP reduce the no of days.
Thanks & Regards,
Shashidhara.GK
HR Manager
From India, Bangalore
Dear Sir,
Please note that there are two types of employees :
1) Monthly rated employees.
All administrative staff/Managers/office staff etc are classified under monthly rated. They get their salary for particular calender month.Irrespective of month days there is no salary variation. If there are 4 or 5 weekly off they get paid for all weekly off days.
2) Daily rated employees.
All wage earners, particularly classified under Workman/Worker category are paid on daily wage basis. The monthly Salary/wages offered are divided by 26 days throughout year and there is no change in formula. For February also same formula is applied.
The Salary/wages of these employes are generally connected with The Minimum Wages Act - 1948 and the minimum wages declared by Govt are calculated by dividing 26 days.While fixing the Minimum Wages the Govt considers the payment for Weekly Off days also. Although the payment is made for 26 days however the weekly off load is always considered
From India, Pune
The act says that after 6 working days a day of rest to be given to our employees. Since the act says a day of rest by not mentioning about the wages/salary for the day of rest the management may kindly give their employees a day of rest and pay salary for 26 working days.
The above logic is correct because Gratuity and leave encashment has been calculated and paid to employees by treatng 26 as normal working day per month as working days
regards
raju
From India, Madras
The above logic is correct because Gratuity and leave encashment has been calculated and paid to employees by treatng 26 as normal working day per month as working days
regards
raju
From India, Madras
Dear Sir,
What Mr PN Pathak above mentioned is the correct scenario
while computing the wages you are required to take calculations for 26 days only and not for 30 days
Suppose you want a person come all the days except sundays the the wages will be for 26 days - Minimium wages to be complied
In the other scenarion when you want all the 30 days to be required to work then you have to have reliever for that person
The concept is generally worked out in outsourcing cases
The calculations are to me made thus either on mandays basis OR manmonth basis
From India, Madras
What Mr PN Pathak above mentioned is the correct scenario
while computing the wages you are required to take calculations for 26 days only and not for 30 days
Suppose you want a person come all the days except sundays the the wages will be for 26 days - Minimium wages to be complied
In the other scenarion when you want all the 30 days to be required to work then you have to have reliever for that person
The concept is generally worked out in outsourcing cases
The calculations are to me made thus either on mandays basis OR manmonth basis
From India, Madras
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