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28/09/2010 15:07:20
Re: new cut off date salary computation

Hi Sir,

All the while the salary is paid till the from early of the month say, 1 july - 31 july 2010. the management has decided to cut off early say 25th of the month. for the computation for the month of august which should be from 25th july - 25th aug, the computation has to be done from 1st aug - 25th aug. as per my understanding, the EA stated the prorate of the salary is divided by 26 days. in this case, how many days should i divided with?

1) basic salary / 31 days calendar month * 25days working
2) basic salary/26 days month * 25 days working.

which is correct?
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KL Siew
28/09/2010 17:43:43
Actually, earlier cut-off date is to facilitate salary calculation where employees are involved lots of overtime and those who are daily paid. They do it this way so that they have more time to check through their punch card and so on so that they can get their salary on time. For monthly paid employees except for their overtime, if any, will not be affected at all. When it come to calculation of ORP, use 26 as it is provided by law. For the initial first month, there may be some confusion amongst the daily rated workers why they got less and HR might have to give some explanations.
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08/10/2010 17:38:50
Hi Sir,

Have to confirm again. For staff salary which is above RM1.5k they are not covered under Employment Act. As such, for the salary computation, can the employer used the based as total calendar days of the month? for instance if the salary incur on October and the staff joined at 12 October, we will take the salary computation as 20working days/31 total days in october x RM2000 salary. is this computation acceptable or legal for staff not cover under employment act?
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