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Thread: Human Resource Manager - salary calculation

  1. #1
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    Human Resource Manager - salary calculation

    Can somebody (human resource manager) help me understand how salary is prorated in malaysia ? Is there a standard way of prorating ?

    Let us say an employee works 5 days week. But he works only 12 working days excluding saturday and sunday. What number do we divide by ?

    x/y * basic salary.

    Is y the number of days (max 31) in the month or number of working days in the month ?

    Does x count as a working day to receive salary even for 5 days week employees?

  2. #2
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    Re: Human Resource Manager - salary calculation

    x is the numbers of days you worked in the month.

    y is the number of official working days (you suppose to work ) in the month

    this is the common practise in my company
    Willi -

  3. #3
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    Re: Human Resource Manager - salary calculation

    Quote Originally Posted by ng
    x/y * basic salary.

    Is y the number of days (max 31) in the month or number of working days in the month ?

    Does x count as a working day to receive salary even for 5 days week employees?
    Most salary is calculated on a 26-30 days basis * your basic salary. My company calculate on 26 days but it works out to the the same.

  4. #4
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    Re: Human Resource Manager - salary calculation

    This is a tricky exercise. Depending on what you are calculating. Bonus or Salary? For Tax purposes or entitlement of leave pay. There is really no standard way.

    The argument goes like this:

    If you are monthly paid, then you will be paid 12 months salary. Forget about the 13th &/or 14th month for the moment if you are contractually given. Your bonus will be calculated separately.

    Your entire year salary would be S*12
    Since you are monthly paid, your holidays and rest days are also paid, hence you are paid for 365 days in a year.

    From this, you get the daily salary of S*(12/365). If you work from 1st January to 31th Jan, then you are entitled to 31 days pay which is S*31*(12/365). This should be the normay way of calculating your pay.

    After saying this, there are actually different ways of calculating the salary for incomplete months.
    1. Full month gets full pay.
    2. Partial month gets prorated for that month.
    or prorated per the whole year
    If prorated for that month, it would be x/30 or 31 for that month.
    If prorated for the whole year, it would be x/365 for whole year salary.
    I have come across companies that calculate based on the month worked. I have also come across companies that base on the year of salary.
    Usually if you are paid on a monthly basis, and on a permanent payroll, then you are based on the year. (again this varies from company to company.) So, best is to ask your HR, for the formula.


    As an example (based on yearly salary)

    Paid days = 31
    Total days in a year = 365
    Salary for year = 12,000 ( =12x1,000 )
    Paid amount = 31*12,000*(31/365) = 1019.178 (for mont of Jan 1st to 31st)

    Monthly Salary, S = 1,000 (assume)
    Yearly Salary =12,000 (=S*12)
    Days worked ,x = 31 (1st Jan to 31st Jan) say for example
    Days per month = 30.42
    Salary per day = 32.88
    Days in a year, d = 365
    x/y = 0.0849
    S *12* (x/y) = 1019.178082 (not the same as your monthly salary)


    However, some companies will remove the element of the rest-days and public holidays and calculate strictly on days worked. Then the salary per year will also remove the holiday/rest days element. (365 minus holidays minus restdays etc...)

    Hope this helps
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  5. #5
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    Re: Human Resource Manager - salary calculation

    Quote Originally Posted by ng
    Can somebody (human resource manager) help me understand how salary is prorated in malaysia ? Is there a standard way of prorating ?

    Let us say an employee works 5 days week. But he works only 12 working days excluding saturday and sunday. What number do we divide by ?

    x/y * basic salary.

    Is y the number of days (max 31) in the month or number of working days in the month ?

    Does x count as a working day to receive salary even for 5 days week employees?

    That would depends on the scenario.
    As an example , I would take 1st January 2005 to 18th January 2005 which is translated to 12 working days.

    There are 2 types of calculation. This would depend on what it is agreed with the company whether the salary is based on Daily pay or Monthly pay.

    For Daily Pay, the calculations would be pretty simple.

    12/no of days in the month (31) x Salary


    For monthly Pay, the calculations as follows.

    18/no of days in the month (31) x salary

    Hope this helps..

  6. #6
    Join Date
    Jun 2002
    Posts
    1,135

    Re: Human Resource Manager - salary calculation

    (only in m'sia?) the ira - nothing irish here - just d ind relations act - and e ea (employment act) covers a mediocre range of employees by salary. if u earn > 2k, u bcum a slave of yr employer unless u hv a well defined contract or gd union. rate of pay is well defined in either d ea or ira, my greying matters has stopped mattering about.

    merry xmas n may d new yr see greater accountability n justice in d administration n what they dish out 2 us poor tax payers, eg may i b protected by d laws for lowly paid since i m just a poor as dem!

  7. #7
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    Re: Human Resource Manager - salary calculation

    Hi Joker ... Would you mind to type in full instead of what is usually done when doing an SMS ? .

  8. #8
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    KT
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    Wink Re: Human Resource Manager - salary calculation

    Some company using the actual working day in that month to calculate.

    If you are working 5 days week, is 22 working days in a month, exclude Saturday and Sunday.

    The best way is to check with your HRD.

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