Can any one guide me how the salary is calculated.
In some cases I heard it is 26th to 25th and some from 1st to 31st.
If it is from 26th to 25th, will it be calculated from 1 to 30/31 of current month or it would be cal from 26th to 25th
From India, Hyderabad
In some cases I heard it is 26th to 25th and some from 1st to 31st.
If it is from 26th to 25th, will it be calculated from 1 to 30/31 of current month or it would be cal from 26th to 25th
From India, Hyderabad
Dear Meghana,
Salary Calculation Depend upon month.
if January have 31 days so you divided your salary with 31. in other case if june have 30 days then you divide your salary with 30.
In case of Overtime then you divide salary with 26.
Example:
For the month of January
Salary : 6000
Working day:26
Rest Day:5
Total Pay Days: 31
Overtime : 4 Hours
Salary =(6000/31*31)+(6000/26/8*4)*2=6231.00
For more clarification feel free to call me.....
From India, Delhi
29Salary Calculation Depend upon month.
if January have 31 days so you divided your salary with 31. in other case if june have 30 days then you divide your salary with 30.
In case of Overtime then you divide salary with 26.
Example:
For the month of January
Salary : 6000
Working day:26
Rest Day:5
Total Pay Days: 31
Overtime : 4 Hours
Salary =(6000/31*31)+(6000/26/8*4)*2=6231.00
For more clarification feel free to call me.....
From India, Delhi
when the salary calculation is from 26 to 25 you are paid full for the month and the rest 5 or six days is being considered as you would be present , and if incase the employee is not present for the next 5 or days than it is adjusted in next month salary , this for the speedy process of salary calculation for your payroll dept
From India, Pune
From India, Pune
Dear Rasheed, In MNC salary is processed on pro rata basis and in case someone is not present during the period then same can be adjusted in the following month calculation.
From India, New Delhi
From India, New Delhi
Dear meghana,
Salary depends upon the type of payment. i.e. if a worker is on daily wages the wages should be divided into 26 days otherwise if he paid monthly wage/salary it depends upon the month days.
Second thing, in most of the companies for the easy and prompt payment of salary on the 1st day of the succeeding month, attendance closing would be made in 20th or 25th. i.e. 21st day of preceding month to 20th day of succeeding month which system is followed in our concern also. the remaining days would be considered as "assumed attendance" and if there is any leave or loss of pay will attract in next month calculation.
hope i clear your doubts. if anything wrong, seniors pls guide me.
Regards,
b.saravanakumar
From India, Coimbatore
Salary depends upon the type of payment. i.e. if a worker is on daily wages the wages should be divided into 26 days otherwise if he paid monthly wage/salary it depends upon the month days.
Second thing, in most of the companies for the easy and prompt payment of salary on the 1st day of the succeeding month, attendance closing would be made in 20th or 25th. i.e. 21st day of preceding month to 20th day of succeeding month which system is followed in our concern also. the remaining days would be considered as "assumed attendance" and if there is any leave or loss of pay will attract in next month calculation.
hope i clear your doubts. if anything wrong, seniors pls guide me.
Regards,
b.saravanakumar
From India, Coimbatore
Dear Meghana,
Monthly salary is meant for one month. i.e. whether the month have 28 days, 29 days, 30 days or 31 days; it is common to all months. Accordingly one day salary is equal to monthly salary/number of days in the particular month.
As per Payment of Wages Act salary is to be paid within 7days after completion of month, where number of employees are below 1000. If it is above 1000, salary date can be upto 10 days. Now the coverage of the Act is for monthly salary upto Rs.10000/-
With regards
ABBAS.P.S
From India, Bangalore
Monthly salary is meant for one month. i.e. whether the month have 28 days, 29 days, 30 days or 31 days; it is common to all months. Accordingly one day salary is equal to monthly salary/number of days in the particular month.
As per Payment of Wages Act salary is to be paid within 7days after completion of month, where number of employees are below 1000. If it is above 1000, salary date can be upto 10 days. Now the coverage of the Act is for monthly salary upto Rs.10000/-
With regards
ABBAS.P.S
From India, Bangalore
Dear meghana123,
If a salary is calculated from 26th of one month to 25th of the next month, it would be of the same like how you calculate it for a month (1st to 30th/31st). The main reason for this would be that an employees salary of the balance days (from 25th to 30th/31st) would remain with the employer and that would be paid on the final settlement when an employee leaves/resigns.
This kinda helps me in employee absconding. Again in attrition.
Best regards,
Mahesh
From India, Bangalore
If a salary is calculated from 26th of one month to 25th of the next month, it would be of the same like how you calculate it for a month (1st to 30th/31st). The main reason for this would be that an employees salary of the balance days (from 25th to 30th/31st) would remain with the employer and that would be paid on the final settlement when an employee leaves/resigns.
This kinda helps me in employee absconding. Again in attrition.
Best regards,
Mahesh
From India, Bangalore
Hi,
Salary for all purposes need to be calculated calender month wise i.e. 1st to 30/31st of the month. It synchronizes with the quarterly/half yearly/annual closing of the accounts of the company. If salary is calculated in between the month say 26th to 25th, at the time of every closing of accounts, you have to make provision for unpaid salary (26th to the end of month) and show as unpaid expenses in the Balance Sheet of the company.
I think, no company will put its goodwill on stake by showing provisions on account of unpaid salary.
However, the company keeping its HR Relations with its employees and financial position, may decide to pay salary for the current running month on 25th/26th of the month. Can you imagine institutions like State Bank of India is paying pension to its retired employees on 25 to 27th of the current month for which pension is due on the last day of the month. It is the best example of excellent HR relations.
TR Chhabria
Mob: 9818444595
From India, Gurgaon
Salary for all purposes need to be calculated calender month wise i.e. 1st to 30/31st of the month. It synchronizes with the quarterly/half yearly/annual closing of the accounts of the company. If salary is calculated in between the month say 26th to 25th, at the time of every closing of accounts, you have to make provision for unpaid salary (26th to the end of month) and show as unpaid expenses in the Balance Sheet of the company.
I think, no company will put its goodwill on stake by showing provisions on account of unpaid salary.
However, the company keeping its HR Relations with its employees and financial position, may decide to pay salary for the current running month on 25th/26th of the month. Can you imagine institutions like State Bank of India is paying pension to its retired employees on 25 to 27th of the current month for which pension is due on the last day of the month. It is the best example of excellent HR relations.
TR Chhabria
Mob: 9818444595
From India, Gurgaon
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SALARY SHEET CALCULATION.xls
Salary calculation.doc