On the first of the month, the accounts office makes the salary sheet. A teacher was absent for four days and took an advance of Rs 5,000. Another worked the whole month. A third joined in the middle. If each case is worked out differently, the sheet cannot be explained, and every payday brings questions.
Use one method for everyone and write it down. Here is a method that is easy to check.
Step 1: Fix the number of working days
Decide how many days the month counts as. Many schools use 30 for every month, which keeps the sum simple. Others count only school days. Choose one rule and apply it to everybody.
Step 2: Work out gross salary
Gross salary is the basic salary plus fixed allowances, such as a house or transport allowance. Write it for each person from their record, not from memory.
Step 3: Count the days worked
For a full month, days worked equals working days, and the person is paid the full gross. For a part month, use the days actually worked. Decide in advance how an approved leave is counted, so the same leave is treated the same way for everyone.
Step 4: Work out the payable amount
For a part month, the payable amount is the gross salary multiplied by days worked and divided by working days. Round to the whole rupee, as a paper sheet would. The difference between gross and payable is the absence deduction.
Step 5: Take off fixed deductions
If a person has a fixed deduction, such as a loan instalment or a contribution, subtract it from what was earned. A deduction should never be more than the person earned in that month.
Step 6: Recover an advance carefully
An advance is money you already gave. Deduct the amount you have agreed to recover this month. Do not let the recovery take the net salary below zero. If the advance is larger than the month can bear, recover part now and the rest later.
A worked example
These figures are an example. A teacher has a basic salary of Rs 30,000 and allowances of Rs 5,000, so gross is Rs 35,000. The month counts as 30 days. The teacher worked 26 days. There is a fixed deduction of Rs 1,000 and an advance recovery of Rs 5,000.
| Item | Amount |
|---|---|
| Gross salary | Rs 35,000 |
| Payable for 26 of 30 days: 35,000 x 26 / 30, rounded | Rs 30,333 |
| Absence deduction: 35,000 minus 30,333 | Rs 4,667 |
| Fixed deduction | minus Rs 1,000 |
| Advance recovered | minus Rs 5,000 |
| Net salary to pay | Rs 24,333 |
Step 7: Record how it was paid
For each person note whether the salary was paid in cash, by bank or through a wallet, and on which date. This is what your accountant needs to match the sheet to the books.
Step 8: Lock the month
When the month is paid, lock it. A salary sheet that can be changed after payment will not agree with the books.
Doing this in Skoo
In Skoo you pick the month and generate. Skoo makes one payslip for every active staff member with basic salary, allowances and fixed deductions from their record. The month is 30 working days unless you change it. You adjust days worked for each person. A full month pays the full gross, and fewer days pay in proportion, rounded to the whole rupee, exactly as in the example. A fixed deduction is never more than what was earned, and an advance recovery can never take the net below zero.
You choose how each salary was paid: cash, bank or wallet, or recorded if it is already in your books, in which case Skoo posts nothing again. Processing posts to the ledger, with advances in a staff advances account. A processed month is final. The salary sheet can be printed.
Days worked are entered by hand. They do not come from staff attendance automatically yet, and Skoo has no advances register or increment history yet. See payroll in Skoo and payroll mistakes to avoid.