how to find the salary for the leave without pay days

HRIM 1
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Sir, Can you tell me the standard formula for calculating the per day salary. This arises when we need to calculate the leave without pay for employees. Earlier, we used to follow the formula- {(gross monthly x 12 months)/365 days} x no of days without pay.

Now we have outsourced the payroll management to a third party and they follow the rule- {gross monthly/ no of days for that month} x no of days without pay. So, the amt varies slightly with the no of days in that month. Is this an acceptable formula. Please advise.

Thanks, HRIM

per-day-salary salary-calculation leave-without-pay
1 Answers

There is as such no right or wrong in this. Both approaches are fine, but I think, second one (divide by no of days in month) is used more in companies.

Pankaj Batra5212

I believe that formula#1 ({gross monthly/ no of days for that month} x no of days without pay) is the best as it will ensure same amnt all the time.

Vineet Mittal•
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