Salary processing for a new joiner

When an employee joins towards the end of a month there there are two ways in which his salary can be processed.

1. Pay partial salary for the first month – this is done if employee joins before the cut-off date

2. Pay salary in next month's payroll – this is done if the employee joins after the cut-off date

For employees joining after a cut off date the salary is typically processed in the next month, this is done to prevent delays in payroll. You can exclude employee from the payroll in the month of joining by changing his first payroll month manually.

In both the scenarios the salary is processed based on the number of days he has worked in the joining month – this is inputted on Employee Details > Payroll Details page.

The first payroll month is to be updated by the Payroll Manager on the Pending for Updation tab on Employee Payroll details page. By default the system will show the month based month of joining but the list of months will include upto the current payroll month + 1. For example if the payroll for June has been run and you add an employee with a date of joining of April then you can select April, May, June or July as his first payroll month. If the in the same scenario an employee is added with a date of joining of August then you can select August or September as his first payroll month.

When filling up employee details you can overwrite the number of days working in the first payroll month or first payroll month -1 depending upon what your have selected as first payroll month.

Example
Scenario 1 - Employee date of joining - 10/Jun
1. Number of working days by the employee = 21
2. Total salary for the month for assuming full month working = 30,000
3. First Payroll Month = June
4. Actual salary paid through payroll = 21x30000/30 = 21000

Scenario 2 – Employee date of joining – 28/Jun
1.    No salary paid in June payroll and first payroll month is selected as July
2.    Number of working days in June entered = 3
3.    Salary paid = 30000 + 30000x 3/30 = 33000

Please note that in scenario 2 the number of days in June is being taken to calculate the partial salary.

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