From attendance to payable salary
Monthly salary is paid for the full month only when the employee is present or on paid leave for every working day. Absences beyond the leave balance become loss of pay (LOP), and the salary is reduced proportionately. The calculation looks simple but mistakes are common: which divisor to use, whether weekly offs count as paid days, and how to treat half days and late marks. This calculator applies a clear, auditable method.
Formula
- Per-day salary = Monthly salary ÷ divisor (calendar days of the month, fixed 30, or 26 working days)
- Paid days = Present + Weekly offs/holidays + Paid leave + 0.5 × Half days − late-mark deductions
- LOP days = Days in month − Paid days
- Payable salary = Per-day salary × Paid days (calendar basis) or Monthly salary − Per-day salary × LOP days (fixed-divisor basis)
Worked example
Salary ₹30,000 for April (30 days). Present 22 days, weekly offs 5, paid leave 1, no half days. Paid days = 28, LOP = 2. Per-day salary = 30,000 ÷ 30 = ₹1,000, so earned salary = ₹28,000. If one of the present days was a half day, paid days become 27.5 and the earned salary ₹27,500.
Which divisor should you use?
Most Indian companies use calendar days, so the per-day rate is ₹967.74 in a 31-day month and ₹1,071.43 in February — the LOP deduction for one day therefore varies by month. Factories and daily-rated workers commonly use 26 days, which treats weekly offs as paid and gives a higher per-day rate. Government bodies often use a fixed 30. Follow your appointment letter or standing orders and apply the same rule to every employee.
After the earned salary
Statutory deductions — PF, ESI, professional tax and TDS — are applied on the earned (reduced) salary, not the full monthly salary. Use the In-Hand Salary Calculator or the Payroll Sheet to complete the computation.
Frequently Asked Questions
Are weekly offs paid when an employee has LOP in the same week?
Generally yes, unless the employee is absent on both the day before and after the weekly off (sandwich rule) and company policy says otherwise. Enter the number of paid offs accordingly.
How is half-day salary calculated?
A half day counts as 0.5 paid day, so the deduction is half of the per-day salary. The calculator also applies a configurable late-mark rule (3 late marks = half-day deduction).
Should LOP be computed on gross or basic?
On gross salary — every component reduces proportionately. PF and ESI are then computed on the reduced basic and gross.
Why does the same LOP cost differently in different months?
Because with the calendar-day method the per-day rate is monthly salary ÷ 28, 30 or 31. Use the fixed 30-day basis if you want a constant rate.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.