Hi all,
I have a query related to the calculation of payroll based on a 30-day standard instead of month days.
Case 1: If an employee joins on the 13th of October (month with 31 days) and the pay calculation is based on 30 days, what would be the salary if the gross is Rs 20,000, and for how many days will the payment be done?
Case 2: If an employee joins on the 10th of February (month with 28 days) and the pay calculation is based on 30 days, what would be the salary if the gross is Rs 20,000, and for how many days will the payment be done?
Please help me out.
Regards,
Sridhar
From India, Hyderabad
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I have a query related to the calculation of payroll based on a 30-day standard instead of month days.
Case 1: If an employee joins on the 13th of October (month with 31 days) and the pay calculation is based on 30 days, what would be the salary if the gross is Rs 20,000, and for how many days will the payment be done?
Case 2: If an employee joins on the 10th of February (month with 28 days) and the pay calculation is based on 30 days, what would be the salary if the gross is Rs 20,000, and for how many days will the payment be done?
Please help me out.
Regards,
Sridhar
From India, Hyderabad
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Hi Sridhar,
If an employee joined on 13th Oct, the ED (Earn Days) will be 19 days, and the salary breakup amount will be converted as per earn days. For example, if the basic salary is 10,000, then for 19 days, the basic will be INR 6129 (10000*19/31). All the breakup components will be divided as above and paid to the employee.
I hope the above-mentioned example will help you in calculating Earn Days and payments.
Regards,
Prem Singh Rawat
From India, Delhi
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6If an employee joined on 13th Oct, the ED (Earn Days) will be 19 days, and the salary breakup amount will be converted as per earn days. For example, if the basic salary is 10,000, then for 19 days, the basic will be INR 6129 (10000*19/31). All the breakup components will be divided as above and paid to the employee.
I hope the above-mentioned example will help you in calculating Earn Days and payments.
Regards,
Prem Singh Rawat
From India, Delhi
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Dear Sridhar,
As mentioned by Prem above, the calculation for the number of days remains the same for any month. That is, (each individual salary component) / 30 * (number of days present in the month). Please refer to the attached Excel file for further details.
From India, Mumbai
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As mentioned by Prem above, the calculation for the number of days remains the same for any month. That is, (each individual salary component) / 30 * (number of days present in the month). Please refer to the attached Excel file for further details.
From India, Mumbai
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Thanks to Prem and Kiran for the replies.
I just want to know clearly when I am calculating the salary based on a constant of 30 days. Can you please provide the exact payable amount if the gross is 20000 and the employee joined on the 13th of October? According to my understanding, the value should be Rs 12666.67 as the employee is present for 19 days.
Please help me out.
From India, Hyderabad
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I just want to know clearly when I am calculating the salary based on a constant of 30 days. Can you please provide the exact payable amount if the gross is 20000 and the employee joined on the 13th of October? According to my understanding, the value should be Rs 12666.67 as the employee is present for 19 days.
Please help me out.
From India, Hyderabad
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Dear Sridhar,
Anyone cannot disclose their salary for 19 days because every company has its own criteria to split the salary. This includes components such as Basic, HRA, Compensatory Allowance, City Compensatory Allowance, Special Allowance, and others. Initially, you need to determine the percentage allocated to Basic, HRA, and other components before calculating the actual amount the individual will receive. For instance, if you allocate 40% to Basic, the net amount will be different compared to allocating 50% to Basic. Therefore, it is essential to first decide on the criteria you will be following.
Kindly let me know if you have any questions or need further clarification.
Thank you.
From India, Visakhapatnam
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Anyone cannot disclose their salary for 19 days because every company has its own criteria to split the salary. This includes components such as Basic, HRA, Compensatory Allowance, City Compensatory Allowance, Special Allowance, and others. Initially, you need to determine the percentage allocated to Basic, HRA, and other components before calculating the actual amount the individual will receive. For instance, if you allocate 40% to Basic, the net amount will be different compared to allocating 50% to Basic. Therefore, it is essential to first decide on the criteria you will be following.
Kindly let me know if you have any questions or need further clarification.
Thank you.
From India, Visakhapatnam
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Dear All,
Suppose an employee works for 8 days in an organization with a salary of 5000. If 5000/30*8 equals 1333, and if the actual month's total days are considered, it comes to 5000/28*8 == 1428. Here, the employee is at a loss.
On the other hand, suppose an employee works for 19 days in January. Then, 5000/30*19 == 3167. If January has 31 total working days, then 5000/31*19 == 3065. In this case, the employer is at a loss.
Can you suggest any solutions?
Suresh M.G
From United Arab Emirates, Dubai
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Suppose an employee works for 8 days in an organization with a salary of 5000. If 5000/30*8 equals 1333, and if the actual month's total days are considered, it comes to 5000/28*8 == 1428. Here, the employee is at a loss.
On the other hand, suppose an employee works for 19 days in January. Then, 5000/30*19 == 3167. If January has 31 total working days, then 5000/31*19 == 3065. In this case, the employer is at a loss.
Can you suggest any solutions?
Suresh M.G
From United Arab Emirates, Dubai
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Dear Prem,
Payroll calculation should be like this: Salary = (Gross Salary / Calendar Days) * Present Days. For example: (20000 / 31) * 19 = 12258 for October. If you calculate as (20000 / 30) * 31 = 20666.6 for October. For February: (20000 / 30) * 28 = 18666.6. Either you calculate as per the calendar days or consider 28 days as 30 days and 31 days as 30 days, and always divide the salary by 30 days. The figure will be the same, but this practice is wrong, and confusion will take place.
Thank you.
From India, Pune
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Payroll calculation should be like this: Salary = (Gross Salary / Calendar Days) * Present Days. For example: (20000 / 31) * 19 = 12258 for October. If you calculate as (20000 / 30) * 31 = 20666.6 for October. For February: (20000 / 30) * 28 = 18666.6. Either you calculate as per the calendar days or consider 28 days as 30 days and 31 days as 30 days, and always divide the salary by 30 days. The figure will be the same, but this practice is wrong, and confusion will take place.
Thank you.
From India, Pune
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x