Calendar days and payable days are vital information to arrive at current earnings. The HR department either shares payable days or loss of pay (LOP) days with the Payroll Processor, month on month.
The sum of all applicable compensation components, prorated for the payroll period, represents the earnings such as Basic, HRA, Conveyance, Medical Allowance, and Special Allowance. For employees with full payable days, these are full earnings and for the rest, prorated earnings.
For example, take the case of an employee who joined on 7th January 2013. Here, payable days are 25.
In addition to this, one-time payouts can also come as part of the earnings. For Payroll Processor, collecting inputs on one-time payouts (ad hoc earning) from HR is a checklist item every month. Examples of one-time payouts are joining bonuses, attendance bonuses, overtime pay, etc.
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