how to find the salary for the leave without pay days

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

asked Jun 27 '13 at 11:28 by HRIM 12823

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.

answered Jun 30 '13 at 19:11 by Pankaj Batra 5.2k320

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.
(Jul 02 '13 at 15:14) Vineet Mittal

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Asked: Jun 27 '13 at 11:28

Seen: 1,238 times

Last updated: Jul 02 '13 at 15:14

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