Calendar days and payable days are vital information for calculating current earnings. The HR department shares either the payable days or the loss of pay (LOP) days with the Payroll Processor on a monthly basis.
The sum of all applicable compensation components, prorated for the payroll period, represents the earnings such as Basic, HRA, Conveyance, Medical Allowance, and Special Allowance. For employees with full payable days, these are full earnings and for the rest, prorated earnings.
For example, take the case of an employee who joined on 7th January 2013. Here, payable days are 25.
In addition to this, one-time payouts can also come as part of the earnings. For Payroll Processor, collecting inputs on one-time payouts (ad hoc earning) from HR is a checklist item every month. Examples of one-time payouts are joining bonuses, attendance bonuses, overtime pay, etc.
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Related Links:
Video- To watch the video on Payslips, click here.
FAQs- To read more FAQs about the Payslips, click here.
Documentation- To learn more about the Payslips, click here.
Product Update- To read about the product update, click here.
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