Salary calculation

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VARUN.C.DAS

VARUN.C.DAS (Querist)
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10 August 2010 dear all
In my client for salary calculation Loss of pay calculated like this
1.LOP=(Basic salary/31)*No.Leave

In my opinion 2. Lop=(basic salary/26*No.Leave)
Which one is Right
Is it any problem if the company following the first Which one is as per law

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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10 August 2010 Suppose an employee takes leave from saturday to monday and came on tuesday. In this case there are 2 methods:

1- You will count sunday as leave taken. If it is so then point 1 in your case should be opted.

2- However, if sunday is considered permanently off and 2 days are considered for his leave then point 2 in your case shall be opted.

In practical situaton point 1 is opted by the employers as it is more baneficial for them

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VARUN.C.DAS

VARUN.C.DAS (Querist)
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10 August 2010 thanks sir
How the point two will beneficial to employers
For example One who takes two leave and B.S. 3000
then LOP under 1 is =(3000/30)*2=200
LOP under option two is (3000/26*2)=230
it is beneficial to employees How it is beneficial to employers? pls tell me i Don't know sir

VARUN.C.DAS

VARUN.C.DAS (Querist)
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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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10 August 2010 The reason is very simple if employer counts sunday as permanent off then those employees, who does not take leave because of sunday will also be counted as leave, will be free to take the leave. It means the employer has to face the problem of short staff due to wrong policy. However, this does not apply to the middle and top management personnel.

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