Dear All,
I have a query with respect to salary calculation.
Say that an employees Basic is 336980/- Per year as per the calculation from Fixed Pay.
If we calculate it for month (336980/12 = 28081.67/- Per month) and again if we calculate from month to year by rounding the values (28082*12=336984/-) so now there occurs a difference in value. We are mentioning both the Month and Year wise component deatils in Offer Letter. Employees will question on this calculation as the difference amount occurs.
Kindly help me to overcome this issue?
From India, Bangalore
I have a query with respect to salary calculation.
Say that an employees Basic is 336980/- Per year as per the calculation from Fixed Pay.
If we calculate it for month (336980/12 = 28081.67/- Per month) and again if we calculate from month to year by rounding the values (28082*12=336984/-) so now there occurs a difference in value. We are mentioning both the Month and Year wise component deatils in Offer Letter. Employees will question on this calculation as the difference amount occurs.
Kindly help me to overcome this issue?
From India, Bangalore
Hi Mr.Sathya,
Differences between the amount is mere FOUR rupees, If your employees raised this as an issue than tell them the exact reason for the difference, I hope employees will understand this.
With Regards
Mr.Thumbs Up
From India, Chennai
104Differences between the amount is mere FOUR rupees, If your employees raised this as an issue than tell them the exact reason for the difference, I hope employees will understand this.
With Regards
Mr.Thumbs Up
From India, Chennai
Hi, Sathya
I believe rather calculating employee's basic salary on yearly basis you go for monthly remuneration and thereafter calculate yearly. If the monthly salary is in in decimal figure then round it off and post it you may calculate the same.
Best wishes !!!
From India, Delhi
I believe rather calculating employee's basic salary on yearly basis you go for monthly remuneration and thereafter calculate yearly. If the monthly salary is in in decimal figure then round it off and post it you may calculate the same.
Best wishes !!!
From India, Delhi
@Kumaran: We shall explain but our mgmt doesn't want to answer for each and every employee if they raise this issue. We are looking for a permanent solution.
@Meena,
Post rounding off the monthly value, if we calculate it for yearly basis then also the pblm occurs..
Thanks,
Sathya A N
From India, Bangalore
@Meena,
Post rounding off the monthly value, if we calculate it for yearly basis then also the pblm occurs..
Thanks,
Sathya A N
From India, Bangalore
Fixation of Basic salary and other components connected normally calculated and payable on monthly basis . The concept of fixation of salary per year some how I am not followed. If you please elaborate the purpose behind this, we may be able to guide you.
Adoni Suguresh
Labour Laws Consutant
From India, Bidar
Adoni Suguresh
Labour Laws Consutant
From India, Bidar
sir,
There is no such rule for fixation of basic but it assumed that Basic salary should be 50%-60% of the Gross salary but not less that the prescribed minimum wages of the state, HRA-40%-50% of the gross salary, Conveyance Rs-1600/-(exempted from IT) rest should be put in other allowance.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
There is no such rule for fixation of basic but it assumed that Basic salary should be 50%-60% of the Gross salary but not less that the prescribed minimum wages of the state, HRA-40%-50% of the gross salary, Conveyance Rs-1600/-(exempted from IT) rest should be put in other allowance.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Dear friend
I do not think an employee getting a Basic Pay of Rs. 28082 p.m. will not understand the calculation of rounding up fractions; or will mind why he got Rs. 4 extra in a year.
In fact, if such an employee wastes his and company's time and also that of others, in asking details and justification of Rs. 4; then one can safely conclude that your have made a BLUNDER in hiring such a person at such a high salary.
Only question that I am curious to know is, How do you hire such employees ???
Based only on reference or orders from your seniors; or do you have any system of Recruitment ???
Pardon me, if you find the above not very pleasant. In fact, I think none of the members have liked their time and efforts being wasted on such mundane, irrelevant and IMMATERIAL questions.
For your kind information; EVEN THE LAW DOES NOT TAKE INTO CONSIDERATION TRIFLES OR TRIFLING ISSUES !!! And this is an ESTABLISHED LEGAL PHILOSOPHY.
If you do not believe my words, then please go and try to file an FIR that someone has robbed you of Rs.4, or that you lost Rs. 4. See if the Law takes any action on this.
In all fairness to you, and giving you the benefit of Doubt, it seems your seniors or colleagues are trying to make a fool of you.
Its just like elders tell a child, "Your ears has been taken by that Crow !!" and to see the Child running after the crow !!!
From India, Delhi
I do not think an employee getting a Basic Pay of Rs. 28082 p.m. will not understand the calculation of rounding up fractions; or will mind why he got Rs. 4 extra in a year.
In fact, if such an employee wastes his and company's time and also that of others, in asking details and justification of Rs. 4; then one can safely conclude that your have made a BLUNDER in hiring such a person at such a high salary.
Only question that I am curious to know is, How do you hire such employees ???
Based only on reference or orders from your seniors; or do you have any system of Recruitment ???
Pardon me, if you find the above not very pleasant. In fact, I think none of the members have liked their time and efforts being wasted on such mundane, irrelevant and IMMATERIAL questions.
For your kind information; EVEN THE LAW DOES NOT TAKE INTO CONSIDERATION TRIFLES OR TRIFLING ISSUES !!! And this is an ESTABLISHED LEGAL PHILOSOPHY.
If you do not believe my words, then please go and try to file an FIR that someone has robbed you of Rs.4, or that you lost Rs. 4. See if the Law takes any action on this.
In all fairness to you, and giving you the benefit of Doubt, it seems your seniors or colleagues are trying to make a fool of you.
Its just like elders tell a child, "Your ears has been taken by that Crow !!" and to see the Child running after the crow !!!
From India, Delhi
Dear Sathya AN,
Salary is fixed on per annum basis in the appointment letter. So pay him rounding off the figure every month for 11 months. In the 12th month you pay him gross pay as per appointment letter minum total of what you have paid for 11 months. Trust this will solve your predicament.
From India, Pune
Salary is fixed on per annum basis in the appointment letter. So pay him rounding off the figure every month for 11 months. In the 12th month you pay him gross pay as per appointment letter minum total of what you have paid for 11 months. Trust this will solve your predicament.
From India, Pune
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