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Changes on salary cut off date

Wed, 30 Jan 2008 03:19:29 PM  (Last updated: Wed, 30 Jan 2008 04:09:42 PM)

Dear Siw, pls comment on below :

my company are changing the salary cut off date from 30th/31st of calendar month to 25th of every month (for retail staff only, meanwhile office staff stil remain with cut off based on calendar month ), so that we can pay on 30th of the month for all staff.

1. can a company have double standard on salary payment (different of cut off date) whereby for the first month those retail staff will get lesser ?

2. after get their consent, i m not sure on the calculation. is the below calculation correct ?

[ Basic: 1000 / full calendar day (29 days of Feb)] * 25 days (cut off date) ?

= [ 1000 / 29 dys ] * 25dys = 862.07 (salary for the month of FEb 08 = incomplete mth)

3. for the mth of March, they (retail staff ) are taking full salary but how abt their unpaid leave on let say 28/02/08 ? its their basic divided by 29 days ? ( cos 4 day from Feb + 25day from March )

4. Are we need to inform EPF / LHDN/ SOCSO in advance for their incomplete month salary ?

Thank You.

KL Siew
Wed, 30 Jan 2008 04:09:42 PM

1. You will have to explain very clearly to the staff concerned. Otherwise they will complain why they are being paid less. Tell them sales staff's salary involves overtime, commission etc etc and it takes time to calculate. They should get used to the system after sometime. But try not to implement change so suddenly. Better to give them prior notice that there is going to be change in payment system from certain month onwards.

2. For Feb, the calculation is correct.

3. For March i.e. from 26/2 to 25/3, the total days is also 29. As such you will have to use 29 to do the calculation.

4. EPF, SOCSO etc are based on salary they get. I do think there is a need to inform them. But you can do that if you are not so sure.

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