Working days in payroll

Working days in payroll

Working days is a very important input while running payroll. Some scenarios are explained below.
1. Employee has joined the company on 25-May-2023. The first payroll month is selected as June-2023. System will take the number of working days in June as 37 (30+7). Refer to the article on First Payroll Month for more details. In this scenario the Working days for May and June will be handled separately for the purpose of ECR file in PF
2. Leave Without Pay deduction - Suppose you are running June 2023 payroll and for an employee there are two LWPs, one for June 2023 and one for May 2023. The LWP deduction amount for both these days will be different since there are 31 days in May and 30 days in June. Even though you will see 30 working days in the salary register and salary slip the salary figures will be based on the two deductions.
3. Leave Without Pay reversals - If there is one day's leave without pay reversal in June 2023 then the working days would be shown as 31.
4. Maternity leave or any other leaves - all leaves are considered as working days

Working Days = Total number of days in the month - (LWP + Days before date of joining + Days after last working day)
The value of working days in the month is used for various purposes, some of which are explained in articles listed below
1. Leave Without Pay deductions & Reversal of LWP
 2. Leave encashment – when an employee resigns or during the annual process of leave encashment the amount of money payable to the employee is based on the basis of number of days and actual number of days being encashed
3. Salary processing for a new joiner - to manage the first month's payroll for a new joiner

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