Dear Seniors,

In my organization, we have a practice of calculating the working days from the 1st to the 30th and paying salary by the 10th of the next month. I want to ensure that the salary is disbursed by the last working day of the same month and hence I have proposed to change the calculation of working days from the 1st to the 30th to the 21st to the 20th (New dates).

I have introduced this process in the middle of the existing process. Can someone suggest to me how to implement the new system without deducting 10 days' salary, as the new dates for calculating salary start from the 21st and end on the 20th of the next month?

Please email me your suggestions to santosh.yb@gmail.com.

Regards,
Santosh

From India, Madras
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most of the leading companies have the attendance cycle of 16th to 15th. Iany any leave/absent take place, it will be reckoned in the next cycle. pon
From India, Lucknow
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That's fine. However, I am looking for a solution to the sudden change in the salary cycle. If I do not opt for any salary deductions, that would imply that I am paying them a salary for 10 days in advance since I have paid salaries up to 31st March for all employees. If I initiate the new cycle, I either need to deduct 10 days' salary or provide them with extra pay for 10 days. The first option will likely be objected to by the employees, while the second option will be objected to by the management.

Can you provide me with a solution to this typical problem?

Regards,
Santosh

From India, Madras
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Hi Garima,

I work in a manufacturing firm with 150 staff and 1500 workers. We create salaries in Excel format and distribute printed salary slips to all individuals, including workers and staff. This process consumes a lot of time and effort from our team members. Could you please assist me in finding ways to distribute the payslips to all 1600 employees with less time and effort from our HR team? Only 100 out of all employees have access to computers.

Thank you,
Garima

From India, Gurgaon
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Dear All, Greetings of the day! Is there any difference between "workers" or "staff". Pls clarify & what can be the format of salary slip prepared in excell sheet. Best regards, Sudhi
From India, New Delhi
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  • CA
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    (Fact Checked)-[B]Response[/B]: The term "workers" typically refers to those involved in manual or industrial work, while "staff" refers to employees in a broader sense. Salary slip format in Excel should include basic details like earnings, deductions, and net pay. (1 Acknowledge point)
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  • Since you have around 1600 employees. There must be different deptts. Thus send Slary/wage slips to respective deptts. and put responsbility of distribution on them for their depts.
    From India, Nagpur
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    Hi,

    Just start this practice, and you will find that your doubt would prove to be unfounded. Everybody will be pleased with your move, even the management, when they also start receiving their salary on the last day of the month. Most importantly, you won't find overpayment even to 1% of the staff, as rare cases will be there where someone might be on leave. Even in that 1%, if leave becomes due, there will be no question of overpayment coming to the fore. In the rare event that such a case arises, you would be able to recover the overpayment from their next salary.


    From India, Delhi
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    Dear Mr. Santosh,

    Greetings!!

    You can apply this calculation while calculating the salary. Since you said you want to calculate for the period 21st to 20th of every month and you have already paid till the 30th of the previous month. Calculate the salary from 1st to 20th for the first month and assume the last 10 days of the employees would be present. For example, from 1st March to 31st March = Already paid. New Salary Dates Implemented from 1st April-20th April = 20 Days + 10 days (Assumed Employee will be present). If any Leave or LOP is availed by the employee, calculate it in the second month, i.e., for the cycle 21st April to 20th May. From the second month, this will come in order.

    Regards,
    Videet

    From India, Pune
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    Dear Mr. Balaji,

    I appreciate your effort. It is not wrong to change to a convenient pay cycle. In fact, we, with a strength of 3500 employees in our company, follow this practice. So, you need not panic. There is nothing wrong or illegal about it. The only thing is, as per labor laws, the salary should be paid on or before the 10th of the following month. The date of salary disbursement should be notified on all notice boards permanently. I suggest the following steps:

    1. For the first time you change over, you may have to work out the salary for the broken period. I suggest, as we also follow, for the purpose of closing the attendance, you may consider the salary month from the 19th of the current month to the 20th of the following month. When you close the month with attendance on the 20th, it will be easy for you to calculate the salary and disburse it on or before the 30th of any calendar month. This will solve many problems like TDS, PT, etc. Only for the first month of the changeover, you have to disburse the salary for the initial broken period. For example, if the new system will be introduced from 19.4.2011, then the salary for 1.4.2011 to 18.4.11 shall be calculated separately and paid on or before say 20.4.11 or merged in the salary for the period from 19.4.11 to 20.5.11 and disbursed for the initial month of the new system. Then from May onwards, you will have no problem following the cycle. By this method, all related aspects like leave, allowances, etc., will be deemed to cover the 19th to 20th month system.

    There is no ambiguity regarding either payment in advance or delay in payment. Many companies follow such methods.

    2. You are brilliant in how you manage with Excel files for payroll calculation and distributing pay slips. It is cumbersome. I suggest you try to have a suitable program written to suit your requirements, either in-house or from external software developers. I may suggest a program based on any one platform such as PowerBuilder, Oracle, SAP, and so on. I think using Excel files for this purpose is very risky. This new program, if linked with the attendance recording network, will ease your workload. All your records related to payroll can be maintained online and processed quickly, minimizing manual work or data entry (batch processing), etc.

    If you have any queries, please continue this link.

    All the best.

    Kumar, Bangalore

    9.4.11

    From India, Bangalore
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    Hello Santosh,

    I think psdhingra is right. You haven't mentioned which industry you are working in. If it's manufacturing, you would have an Employees Union. And even if you don't have any, just sound out this idea with those whom you know or those who are likely to have a say in the other employees' decision (union leaders, so to say). Highlight the positive aspects of your step--since at some point the 10 days' salary will need to be handled, better do it right at the start of the change. Once you feel comfortable, you can take the issue to the management.

    Regards,
    TS

    From India, Hyderabad
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