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27/10/2009 22:10:29
Re: Basic Salary for Incomplete Month of Service

I am a bit confuse on the pro-rated basic salary computation after reading all the Q&A.

1. In what scenario, employer have to use 26 days as a base for computation?
2. For incomplete month of service, should employer use 26 days as a base? Or, should use calendar days as a base?
3. Any clause in EA 1955 stated employer have to use calendar days (31) as a base to compute basic salary for incomplete month of service?

Appreciate your advice/comment. Many thanks.
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KL Siew
28/10/2009 07:58:17
1. Read Part XII and Section 60I of the EA at Section 60I
2. Since it is monthly rated salary, use number of days of the month will be more accurate. You may of course use 26 as long as it gives you the correct amount and it is not less than that calculated using calendar month.
3. No such provision, just simple arithmetic. For example, salary per month RM1500, the month in September has 30 days, or October has 31 days, so, the per day salary is = ?
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28/10/2009 14:18:45
Thanks for quick response, Mr Siew.

Am I right to say that there is no hard rule saying that employer have to use calendar days (30 / 31) to compute basic salary for incomplete month of service (new hire / resignation)?
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KL Siew
29/10/2009 15:15:52
Yes, as long as the calculation is correct, no one will complain.
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29/10/2009 15:25:14
Many thanks for your advice.
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