Monthly Salary Calculator
How to Use:
- Enter your agreed monthly salary in INR.
- Enter the total number of days in the current month (28-31 days).
- Enter the number of days you worked during that month.
- Click Calculate to see your proportionate salary.
- Download the result as a PDF for record purposes.
Formula: (Monthly Salary ÷ Total Days in Month) × Days Worked
Law Reference: This calculation follows Payment of Wages Act, 1936 and standard payroll practices in India.
Understanding Monthly Salary Calculation in India
In India, employee wages are usually calculated on a monthly basis. However, there are times when an employee does not work the full month due to joining, resignation, or unpaid leave. In such cases, calculating the correct proportionate salary is essential to ensure compliance with labor laws and fair payment to employees.
What is Pro-rata Salary?
Pro-rata salary refers to the amount of salary payable for the actual number of days worked in a given month. This is computed based on the agreed monthly salary and the number of working days.
Formula for Monthly Salary Calculation
The formula commonly used is: (Monthly Salary ÷ Total Days in Month) × Days Worked
For example, if your monthly salary is ₹30,000 and you worked 20 days in a 30-day month, your salary will be: (30000 ÷ 30) × 20 = ₹20,000
Applicable Laws in India
Salary calculation is governed by the Payment of Wages Act, 1936 and the labor regulations under the Shops and Establishment Acts. Employers are required to pay employees accurately for the number of days they worked.
Taxation on Salary
Monthly salary, whether full or pro-rata, is fully taxable under the Income Tax Act as ‘Income from Salary.’ Deductions like PF, professional tax, and TDS may apply.
Why This Calculator Helps?
Using this calculator helps employees estimate their accurate pay for the month, and employers ensure compliance with labor laws.
Conclusion
This tool is useful for employees during partial working months, ensuring transparency and fair wages.