What does it mean by 21st to 21st pay cycle? How is the salary calculated here? And especially for new joiners who join before 21st of a particular month
From India, Delhi
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1From India, Delhi
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Dear Aprajita,
Salary is calculated on a prorated basis in the first month for new joiners and then included in the pay cycle. The pay cycle is the duration within which the salary is calculated. In your firm, it is calculated between the 21st of a month to the 21st of the next month.
Ideally, the calculation is either between the 21st of Month X to the 20th of month Y. But that's entirely for the HR and the patrol team's reference.
From India, Mumbai
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Salary is calculated on a prorated basis in the first month for new joiners and then included in the pay cycle. The pay cycle is the duration within which the salary is calculated. In your firm, it is calculated between the 21st of a month to the 21st of the next month.
Ideally, the calculation is either between the 21st of Month X to the 20th of month Y. But that's entirely for the HR and the patrol team's reference.
From India, Mumbai
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Dear Aparajita,
Hello. I agree with (Cite Contribution). In different organizations, the pay cycle varies. Some companies consider it from the 16th of the previous month to the 15th of the current month, while others use from the 21st to the 20th (as in your case). There are also those who calculate it from the 1st to the last day of the month. In the last scenario, there are no issues. However, in the previous cases, the employee is assumed to be present for the next 15/16 or 10/11 days based on the pay cycle system. In the event of any leave without pay (LWP), the period is adjusted when computing the salary for the following month. For instance, for the month of May, absenteeism will be counted from the 16th of April/21st of April to the 15th of May/20th of May, as the case may be. If an employee takes LWP, the days of absence will be deducted from the salary for the next month.
I hope this explanation clarifies things for you.
Best regards,
Arun Jain
HR Personnel
NCL, Coal India Ltd.
From India, New+Delhi
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Hello. I agree with (Cite Contribution). In different organizations, the pay cycle varies. Some companies consider it from the 16th of the previous month to the 15th of the current month, while others use from the 21st to the 20th (as in your case). There are also those who calculate it from the 1st to the last day of the month. In the last scenario, there are no issues. However, in the previous cases, the employee is assumed to be present for the next 15/16 or 10/11 days based on the pay cycle system. In the event of any leave without pay (LWP), the period is adjusted when computing the salary for the following month. For instance, for the month of May, absenteeism will be counted from the 16th of April/21st of April to the 15th of May/20th of May, as the case may be. If an employee takes LWP, the days of absence will be deducted from the salary for the next month.
I hope this explanation clarifies things for you.
Best regards,
Arun Jain
HR Personnel
NCL, Coal India Ltd.
From India, New+Delhi
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Thank you, Arun, for sharing details on calculating leaves. This is particularly important when calculating the full and final settlement. The remaining days of leave are calculated for encashment based on the daily salary, not the CTC, within the remaining pay cycle.
Let's hear from Aprajita if she needs further confirmation on this.
From India, Mumbai
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Let's hear from Aprajita if she needs further confirmation on this.
From India, Mumbai
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Hi,
Our company follows a 21/20 pay cycle, and here are 2 instances - one for me and one for my team member.
1. I took LOP during June 2012 between the 18th and 22nd. For this duration, LOP for the 18th, 19th, and 20th was deducted in June 2012, and the 21st and 22nd were deducted in July 2012.
2. My team member went on ML from March 2012 and extended her leave through LOP until June 2012. She joined on July 1, 2012. Her salary for July 2012 was paid until the 20th, and for August, it was for the full period from July 21st to August 20th.
Regards,
Sathish
From India, Chennai
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Our company follows a 21/20 pay cycle, and here are 2 instances - one for me and one for my team member.
1. I took LOP during June 2012 between the 18th and 22nd. For this duration, LOP for the 18th, 19th, and 20th was deducted in June 2012, and the 21st and 22nd were deducted in July 2012.
2. My team member went on ML from March 2012 and extended her leave through LOP until June 2012. She joined on July 1, 2012. Her salary for July 2012 was paid until the 20th, and for August, it was for the full period from July 21st to August 20th.
Regards,
Sathish
From India, Chennai
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(Fact Checked)-The user reply contains accurate information regarding pay cycles and adjustments for leave without pay. It aligns with common payroll practices. (1 Acknowledge point)