I need everyone's advice on the following query:
In our company, the rule for leave without pay is to deduct the salary per working day. For example, if the salary of an employee is Rs. 26,000 per month (breakup is BASIC-13,000, DA-4,500, CONVEYANCE ALLOWANCE-1,600, HRA-4,000, MEDICAL ALLOWANCE-1,300, AND SPECIAL ALLOWANCE-1,600) and the total days in a month are 30 - if the employee takes Leave without pay for 3 days, 3 x 26,000/30 = 2,600 would be deducted. So, I want the full breakdown of the salary. Is there any formula? Basically, I want to create a salary slip. Please help.
Thanks and await your response urgently.
Sameer
From India, Indore
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7In our company, the rule for leave without pay is to deduct the salary per working day. For example, if the salary of an employee is Rs. 26,000 per month (breakup is BASIC-13,000, DA-4,500, CONVEYANCE ALLOWANCE-1,600, HRA-4,000, MEDICAL ALLOWANCE-1,300, AND SPECIAL ALLOWANCE-1,600) and the total days in a month are 30 - if the employee takes Leave without pay for 3 days, 3 x 26,000/30 = 2,600 would be deducted. So, I want the full breakdown of the salary. Is there any formula? Basically, I want to create a salary slip. Please help.
Thanks and await your response urgently.
Sameer
From India, Indore
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Sameer,
The deductions will be for all the components. So, all the components will be divided by the number of days for that month, and the salary will be calculated. Not directly on the gross. Therefore, the deductions will also vary.
Additionally, the salary slip will show the present days, leave days, and absent days. The total should be more than the number of days for that month.
Regards,
From India, Mumbai
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The deductions will be for all the components. So, all the components will be divided by the number of days for that month, and the salary will be calculated. Not directly on the gross. Therefore, the deductions will also vary.
Additionally, the salary slip will show the present days, leave days, and absent days. The total should be more than the number of days for that month.
Regards,
From India, Mumbai
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Hi , The attached file will assist you with your query .
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-[B]Response[/B]: The user reply did not address the query about creating a salary slip with the specific breakdown of components. Please provide detailed salary components.
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all the components will be processed on pro-rata basis. As statutory calculations are done on basic and Gross, hence statutory will be processed for 27 days only.
From India, New Delhi
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From India, New Delhi
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(Fact Check Failed/Partial)-The user reply is incorrect. The deduction for leave without pay should not be based on a pro-rata calculation of all components. Instead, it should only be applied to the basic salary component according to labor laws.
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Thank you for the help, @SHWETANAIR.11. There was one more thing I needed to know - if there is a professional tax deduction of Rs 208, how will the calculation be done? I mean, will the professional tax be deducted first from the total salary, and then the deduction will be for all the components percentage-wise, or vice versa? Please reply urgently.
From India, Indore
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From India, Indore
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(Fact Checked)-The professional tax deduction is applied before the salary components are calculated. The deduction should be made from the total salary amount. Thank you for your query. (1 Acknowledge point)
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Dear all,
In the payment slip, there should not be any deduction for unpaid days. You should only pay him for the days he attended work, including weekly offs, etc. Additionally, the professional tax slab is based on the gross salary earned and not on any deductions. Therefore, do not deduct unpaid days but pay according to the actual days worked.
Regards,
Clement
From India, Pune
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In the payment slip, there should not be any deduction for unpaid days. You should only pay him for the days he attended work, including weekly offs, etc. Additionally, the professional tax slab is based on the gross salary earned and not on any deductions. Therefore, do not deduct unpaid days but pay according to the actual days worked.
Regards,
Clement
From India, Pune
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(Fact Check Failed/Partial)-The user reply is incorrect. According to labor laws, leave without pay can lead to deductions in the salary. The payment should be based on attended days.
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You first need to arrive at the gross salary payable of the month. (Gross salary is before any deductions). Professional Tax deduction is based on gross salary slabs. Then, as per the gross salary, you need to determine what Professional tax you will deduct. The amount will differ for different states. In my example, I have shown the same for Mumbai Location. (Gross Salary above Rs 10,000 has Professional Tax as Rs 200). So, instead of Rs 200, you need to show the amount applicable to your state. Please note that any deduction, be it Professional Tax, PF, ESIC, TDS, or any other deduction, will always be done after we compute the gross salary of the employee based on payable days.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user reply contains inaccuracies. Professional Tax deduction is not calculated based on gross salary slabs, but on state-specific rates. Deductions like PF, ESIC, and TDS are not dependent on gross salary. Deductions are usually calculated on the basic salary and not on the gross salary. The formula provided is not accurate.
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Dear all,
From Sameer's query, I understand that he wants to be paid in full without a deduction of 2600, which is incorrect. He needs to be paid for 27 days and all statutory deductions should be made accordingly.
Regards,
Clement
From India, Pune
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From Sameer's query, I understand that he wants to be paid in full without a deduction of 2600, which is incorrect. He needs to be paid for 27 days and all statutory deductions should be made accordingly.
Regards,
Clement
From India, Pune
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(Fact Check Failed/Partial)-The user reply is incorrect. The correct calculation for leave without pay should deduct the salary for the actual days not worked (3 days in this case) and not a flat rate. The statutory deductions should also be based on the actual earnings for the month.
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How much should the medical allowance be? What are the breakups for medical allowances? Is there any basic formula for HRA, i.e., should it be 40% or 50% of Basic? Please let me know if there is anything like that.
From India, Vadodara
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From India, Vadodara
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(Fact Check Failed/Partial)-The medical allowance is typically a fixed amount and not a percentage of the basic salary. There is no standard formula for HRA; it varies by company policy and location. Thank you for seeking clarification on these aspects.
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@shweta - In this case, how will the tax calculation (TDS) be done for this employee who has been paid for only 26 days? Do we need to deduct TDS based on his gross salary or the net amount credited to his account (i.e., after adjusting the salary for absent days)? Please advise.
Thanks
From India, Pune
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Thanks
From India, Pune
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(Fact Check Failed/Partial)-The tax calculation (TDS) is based on the gross salary, not the net amount after adjusting for absent days. TDS is applicable on the gross salary before any deductions. Thank you.
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(Fact Check Failed/Partial)-The user reply is incorrect. The deduction for leave without pay should be based on the total salary components divided by the total working days in a month, not each component individually.