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
1From India, Delhi
Dear Aprajita,
Salary is calculated on the prorated basis on the first month for the new-joinees and then included in the pay-cycle.
The pay-cycle is the duration within which the salary is calculated.In your firm its calculated between 21st of a month to the 21st of the next month.
Ideally the calculation is either between 21st of Month X to 20th of month Y. But thats entirely for the HR and the patrol team's reference.
From India, Mumbai
Salary is calculated on the prorated basis on the first month for the new-joinees and then included in the pay-cycle.
The pay-cycle is the duration within which the salary is calculated.In your firm its calculated between 21st of a month to the 21st of the next month.
Ideally the calculation is either between 21st of Month X to 20th of month Y. But thats entirely for the HR and the patrol team's reference.
From India, Mumbai
Dear Aparajita, Hello
I agree with (Cite Contribution). In different organizations, the pay cycle is different. Some take it from 16th of previous month to 15th of current month, some 21st to 20th(as in your case), some recon it from day 1 to the last day of the month. In the last case, there is no problem. In previous cases, the employee is treated to be present for the next 15/16 or 10/11 days days as per pay cycle system. In case of any leave without pay(LWP), the period is adjusted while computing the salary in next month. Example : For the month of May, the absenteeism will be taken from 16th April/21st April to 15th May/20th May, as the case may be. In case an employee avails LWP, the period of LWP will be adjusted from the next month's salary by reducing the salary days by the period of absence.
Hope this might have helped you.
Arun Jain
HR Personnel
NCL, Coal India Ltd.
From India, Jabalpur
I agree with (Cite Contribution). In different organizations, the pay cycle is different. Some take it from 16th of previous month to 15th of current month, some 21st to 20th(as in your case), some recon it from day 1 to the last day of the month. In the last case, there is no problem. In previous cases, the employee is treated to be present for the next 15/16 or 10/11 days days as per pay cycle system. In case of any leave without pay(LWP), the period is adjusted while computing the salary in next month. Example : For the month of May, the absenteeism will be taken from 16th April/21st April to 15th May/20th May, as the case may be. In case an employee avails LWP, the period of LWP will be adjusted from the next month's salary by reducing the salary days by the period of absence.
Hope this might have helped you.
Arun Jain
HR Personnel
NCL, Coal India Ltd.
From India, Jabalpur
Thanks Arun for sharing details on calculating leaves.
This impacts all the more while calculating the full and final settlement . The remaining days of leave, are calculated for encashment, not on CTC but daily salary, within the remaining pay cycle.
Lets hear from Aprajita, if she needs to confirm this further
From India, Mumbai
This impacts all the more while calculating the full and final settlement . The remaining days of leave, are calculated for encashment, not on CTC but daily salary, within the remaining pay cycle.
Lets hear from Aprajita, if she needs to confirm this further
From India, Mumbai
Hi,
Our company follows 21/20 pay cycle and here are 2 instances - 1 for me and 1 for my team member.
1. I took LOP during Jun 2012 between 18 and 22. For this duration LOP for 18, 19, 20 was deducted in Jun 2012 and 21, 22 was deducted in Jul 2012.
2. My team member went on ML from March 2012 and extended her leave through LOP till Jun 2012. She joined on 1 Jul 2012. Her salary for Jul 2012 was paid till 20-Jul and for Aug, it was for full period from 21-Jul/20-Aug.
Regards
Sathish
From India, Chennai
Our company follows 21/20 pay cycle and here are 2 instances - 1 for me and 1 for my team member.
1. I took LOP during Jun 2012 between 18 and 22. For this duration LOP for 18, 19, 20 was deducted in Jun 2012 and 21, 22 was deducted in Jul 2012.
2. My team member went on ML from March 2012 and extended her leave through LOP till Jun 2012. She joined on 1 Jul 2012. Her salary for Jul 2012 was paid till 20-Jul and for Aug, it was for full period from 21-Jul/20-Aug.
Regards
Sathish
From India, Chennai
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.
ST-27.jpg
Performance Appraisal(OP&ST ).xls