Introduction
With SalaryBox, establishing the salary cycle is straightforward. Moreover, configuring salary heads, including adding various allowances, defining employer contribution categories, and specifying deduction categories, is now efficiently manageable with SalaryBox.
How to set up the Salary Cycle
Tap on ‘Settings’ in the top right corner
Look for ‘Salary Settings’
Now you will see the following three salary settings:
Calendar Month
30 Day Month
26 Day Month
Let’s understand these salary settings in detail:
Calendar Month
When calculating salary based on the number of days in a month, consider that January has 31 days and February has 28 days. Therefore, the salary will be adjusted according to the specific number of days in each month.
Example
Monthly Salary: Rs. 40,000
Month: January
No. of days: 31
No. of Present days: 27
No. of Absent days: 4
Final Salary: Rs. 34,830
30-Day Month Salary Calculation
(If the present days are more than10 days)
Example:
Monthly Salary: Rs. 40,000
Month: January
No. of days: 31
No. of Absent days: 4
No. of Present days: 23
Week off days: 4
No. of Payable days: 27
Salary Calculation(Formula):
Monthly Salary / 30 Day = Per day salary
Per day Salary * Payable days = Actual Salary
Salary Calculation:
40,000 / 30 = 1333.34
1333.34 * 27 = 36000
30-Day Month Salary Calculation
(If the present days are less than 10 days)
Monthly Salary: Rs. 40,000
Month: January
No. of days: 31
No. of Absent days: 19
No. of Present days: 8
Week off days: 4
No. of Payable days: 12
Salary Calculation(Formula):
Monthly Salary / 30 Day = Per day Salary
Per day salary / Absent days = Deduction Salary
Monthly Salary - Deduction Salary = Actual salary
Salary Calculation:
40,000 / 30 = 1333.34
1333.34 * 19 = 25333.46
40,000 - 25333.46 = 14666.54
3. 26-Day Month Salary Calculation
(If the present days are more than10 days)
Example:
Monthly Salary: Rs. 40,000
Month: April
No. of days: 30
No. of Absent days: 4
No. of Present days: 23
Week off days: 4
No. of Payable days: 23
Salary Calculation(Formula):
Monthly Salary / 26 days = per day salary
Per day salary * Payable days = Actual Salary
Salary Calculation:
40,000 / 26 = 1538.47
1538.47 * 23 = 35384.81
26-Day Month Salary Calculation
(If the present days are less than 10 days)
Monthly Salary: Rs. 40,000
Month: April
No. of days: 30
No. of Absent days: 19
No. of Present days: 8
Week off days: 4
No. of Payable days: 8
Salary Calculation(Formula):
Monthly Salary / 26 Days = Per day Salary
Per day salary * Absent days = Deduction Salary
Monthly Salary - Deduction Salary = Actual Salary
Salary Calculation:
40,000 / 26 = 1538.47
1538.47 * 19 = 29230.93
40,000 - 29230.93 = 10769.07