Hi experts,
Our company follows a 30-day base for calculating monthly salaries. I have a situation where an employee was absent for 15 days and worked for 16 days in a 31-day month.
The question is, for how many days should we make the payment:
a) 30 - 15 (absent) = 15 days
or
b) 16 days as he worked
Please advise on the correct calculation method. Thank you.
Acknowledge(0)
Amend(0)
9Our company follows a 30-day base for calculating monthly salaries. I have a situation where an employee was absent for 15 days and worked for 16 days in a 31-day month.
The question is, for how many days should we make the payment:
a) 30 - 15 (absent) = 15 days
or
b) 16 days as he worked
Please advise on the correct calculation method. Thank you.
Acknowledge(0)Amend(0)
Dear Kishore,
Different calendars have a different number of days for a calendar month, though there is uniformity in the number of months in a year. According to the Solar Calendar, a regular year has 365 days, so a month has 30.42 days (365/12), and a Leap year has 30.50 days (366/12). The Gregorian Calendar has 30.44 days in a month (365.2425/12).
As you know, there are 7 months having 31 days, 4 months having 30 days, and one month, namely February, alternates between 28 and 29 days once every four years. Therefore, the universal presumption for the sake of calculation is that a month normally comprises 30 days only.
When wages/salary of employees are calculated on a daily rate basis, there is no problem as only the days worked are taken into account for the purpose. However, when the compensation package is based on a monthly basis, the difference in the days of months does not matter as far as the whole year is concerned. Yet the difficulty, such as the one you have mentioned, arises only when there is part attendance entitling salary/wages to the employee concerned and part absence in a given month entitling no wages at all.
In such a situation, based on the practice followed in Central and State Government Departments, the monthly wages/salary has to be divided by the actual number of days in the particular month to arrive at the daily rate.
From India, Salem
Acknowledge(0)Amend(0)
Different calendars have a different number of days for a calendar month, though there is uniformity in the number of months in a year. According to the Solar Calendar, a regular year has 365 days, so a month has 30.42 days (365/12), and a Leap year has 30.50 days (366/12). The Gregorian Calendar has 30.44 days in a month (365.2425/12).
As you know, there are 7 months having 31 days, 4 months having 30 days, and one month, namely February, alternates between 28 and 29 days once every four years. Therefore, the universal presumption for the sake of calculation is that a month normally comprises 30 days only.
When wages/salary of employees are calculated on a daily rate basis, there is no problem as only the days worked are taken into account for the purpose. However, when the compensation package is based on a monthly basis, the difference in the days of months does not matter as far as the whole year is concerned. Yet the difficulty, such as the one you have mentioned, arises only when there is part attendance entitling salary/wages to the employee concerned and part absence in a given month entitling no wages at all.
In such a situation, based on the practice followed in Central and State Government Departments, the monthly wages/salary has to be divided by the actual number of days in the particular month to arrive at the daily rate.
From India, Salem
Acknowledge(0)Amend(0)
Dear Sir, Thanks for your valuable reply which will be very helpful for me in future.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
How to make impressive Interview for HR executive with experience of Admin & HR officer.
From India, Bhopal
Acknowledge(0)Amend(0)
From India, Bhopal
Acknowledge(0)Amend(0)
I agree with Mr. Umakanthji. We do follow the per day basis calculation for calculating the salaries. As few months have 30 days and few have 31 days. Also, February has 28/29 days. Per day calculation for the whole month is the best option available.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
What about the paid weekly off days in your organization? If there are, monthly salary should be divided by total days minus weekly off days. Please inform.
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Kishore,
In the case of monthly-rated employees, the base for wage/salary calculation per day will pertain to the number of calendar days in that particular month. For months like January, March, May, July, August, October, and December, the calculation should be divided by 31. For February, it should be divided by 28 or 29 depending on leap years, and for April, June, September, or November, it should be divided by 30 as applicable. I believe this method would be a fair way of calculating the daily rate of wages/salary.
Regarding daily-rated employees, it is advisable to follow the guidelines outlined in the Minimum Wages Act, where the monthly wages are divided by 26 days. This approach should be deemed appropriate and compliant with the relevant laws and regulations.
Kind regards,
[Your Name]
From India, Bangalore
Acknowledge(0)Amend(0)
In the case of monthly-rated employees, the base for wage/salary calculation per day will pertain to the number of calendar days in that particular month. For months like January, March, May, July, August, October, and December, the calculation should be divided by 31. For February, it should be divided by 28 or 29 depending on leap years, and for April, June, September, or November, it should be divided by 30 as applicable. I believe this method would be a fair way of calculating the daily rate of wages/salary.
Regarding daily-rated employees, it is advisable to follow the guidelines outlined in the Minimum Wages Act, where the monthly wages are divided by 26 days. This approach should be deemed appropriate and compliant with the relevant laws and regulations.
Kind regards,
[Your Name]
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Respected Sir/Maam Please Confirm me Current Pay Scale Wages of Salary Tailor in Noida ZONE. and Also Confirm me ESIC And EPFO Salary
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
According to any act, there is nothing mentioned about the number of days calculation if the candidate joins or is absent, where the calculation is on a pro-rata basis. There is nothing mentioned. Maximum number of organizations take the number of days as per the days in a month.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear AbuHRD,
Your Question: What about the paid weekly off days in your organization? If there are, the monthly salary should be divided by total days minus weekly off days.
Answer: To my understanding, yes, weekly offs are considered. Why are you subtracting weekly offs again? Anyways, these are entitled in all your days. Example: Out of 30 days, if an employee has worked for 15 days (including weekly offs), you pay him for 15 days. Anyways, he cannot claim remaining weekly offs for which he hasn't worked.
ALSO to note:
If your organization follows a prorata basis for leaves, that means 2 leaves accumulate when you complete 1 month. The keyword here is "complete." If that's the policy, then two leaves won't be considered.
From India, Mumbai
Acknowledge(0)Amend(0)
Your Question: What about the paid weekly off days in your organization? If there are, the monthly salary should be divided by total days minus weekly off days.
Answer: To my understanding, yes, weekly offs are considered. Why are you subtracting weekly offs again? Anyways, these are entitled in all your days. Example: Out of 30 days, if an employee has worked for 15 days (including weekly offs), you pay him for 15 days. Anyways, he cannot claim remaining weekly offs for which he hasn't worked.
ALSO to note:
If your organization follows a prorata basis for leaves, that means 2 leaves accumulate when you complete 1 month. The keyword here is "complete." If that's the policy, then two leaves won't be considered.
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
SALARY SHEET CALCULATION.xls
Salary calculation.doc