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Oct 05, 2009 at 01:16 PM

Disproportionate deduction of HRA in case of Leave without pay leave

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Dear Consultants,

One employee avails following leaves without pay during September, 2009 : 4 Full days LWP & half days LWP on 3 days. As such he availed 5.5 days LWP in a month. He avails 5 Weekly offs in September, 2009. He has Basic = 1000/- & HRA as 600/-.

For my client, the basic is reduced as follows.

Actual Working days = Total No of days in September 30 - Weekly offs of employee 5 = 25

Basic Per day = Monthly Basic / 25 = 1000 / 25 = 40

Basic to be paid = Basic per day 40 X (Days he has worked 25 - 5.5 = 19.5) = Rs. 780/-

In the same way his HRA is also to be reduced. BUT it is calculated as follows :

His days of absence are not considered as 5.5 but only 4 as 4 days are full days & 3 days are half days. Also it does not consider the weekly offs. So the actual working days are considered as 30 - 4 = 26

As such it calculates HRA to be paid as follows

HRA per day = 600 / 30 = 20.

HRA to be paid = HRA per day 20 X Days worked 26 = 520 /-

How can I make the HRA to be calculated as follows ??

HRA per day = 600 / 25 = 24.

HRA to be paid = HRA per day 24 X Days of actual work 19.5 = 468 / -

When I saw the leave records of half days LWP, it shows Absence Days = 0.5, Calendar days = 0.00, Quota used = 0.5. Why does it show calendar days = 0.00 ? Is it the reason these half days LWP are not considered ? But then how are they connsidered for calculating Basic Pay & not considered for HRA ?

Regards

Bindumadhav