Dear All,
I am working for a software development company and I need a small clarification. How is the Loss of Pay calculated normally? Is it calculated including the weekends, i.e., salary divided by 30 days and multiplied by days payable, or salary divided by 22 days (excluding weekends) and multiplied by days payable? As far as I know, in Indian companies, the salary is paid on a monthly basis, and for calculation purposes, we consider 30 days pro-rated. I have heard that in US companies, it is the opposite; the salary is paid for 22 days, and LOP calculation is also based on 22 days.
Please let me know how this is done in Indian software companies.
Thanks,
Geetanjali
From India, Hyderabad
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1I am working for a software development company and I need a small clarification. How is the Loss of Pay calculated normally? Is it calculated including the weekends, i.e., salary divided by 30 days and multiplied by days payable, or salary divided by 22 days (excluding weekends) and multiplied by days payable? As far as I know, in Indian companies, the salary is paid on a monthly basis, and for calculation purposes, we consider 30 days pro-rated. I have heard that in US companies, it is the opposite; the salary is paid for 22 days, and LOP calculation is also based on 22 days.
Please let me know how this is done in Indian software companies.
Thanks,
Geetanjali
From India, Hyderabad
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Hi,
I am an HR professional working in an IT company. We also have LOPs. We pay based on working days only, excluding weekends and holidays. This is the policy our company follows, which is common among most companies.
From India, Bangalore
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I am an HR professional working in an IT company. We also have LOPs. We pay based on working days only, excluding weekends and holidays. This is the policy our company follows, which is common among most companies.
From India, Bangalore
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I also have the same doubt. Can anyone give detailed information on this topic? It will be helpful if we can get detailed information about the calculation of LOP's in IT companies and the Leave Policy followed in IT/ITES industries.
Regards,
Namratha
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Regards,
Namratha
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Dear, you just need to follow the simple formula:
(Total Wage / Total number of days in a month) x Number of days worked.
For example,
Total Wage will be 3500 in the month of Dec09.
Total Days worked = 20 (including leave, Sunday, and Holiday).
Then,
(3500 / 31) x 20 = 2258.00
Regards,
Ajay Desai
Email: desai_ajay@rediffmail.com
From India, Calcutta
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(Total Wage / Total number of days in a month) x Number of days worked.
For example,
Total Wage will be 3500 in the month of Dec09.
Total Days worked = 20 (including leave, Sunday, and Holiday).
Then,
(3500 / 31) x 20 = 2258.00
Regards,
Ajay Desai
Email: desai_ajay@rediffmail.com
From India, Calcutta
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Hi Rajesh, You have mentioned that it is Salary * Paid days / Calender days of the month. Can you please explain with an example? Regards, Namratha
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Hi All, Every one is saying salary/no of days in a month * no of days worked Can any one tel us what does it mean salary is it Gross or NTH or CTC Thanks Rajesh Kumar
From India, Hyderabad
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From India, Hyderabad
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For the calculation of LOP, actual scheduled working days will have to be taken into account. For example, in a month, if the scheduled working days are 26, then for every LOP day, the employee will lose 1/26 days' salary instead of 1/31 days. Only then will the loss be more significant, and the employee will be discouraged from being on LOP.
From India, Bangalore
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From India, Bangalore
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