Hello everyone,
Did anyone adjust payroll (components - structure - settings) considering Egyprian law based on 30 Days Calculation in Edge Cases Like Employee Left or Employees Joined during payroll period in months not equal 30 days like Augest = 31 days, February = 28 days
Example 1:
→ October 31 Days on Calender, but we need it to be calculated on 30 days as per law
- Employee joined in the 16th day of the month
- Employee Left 16th day of the month
- Employee Joined for 1 day and Left
—> Considering Base salary for this Employee 15K
Example 2:
→ February 28 Days on Calender, but we need it to be calculated on 30 days as per law
- Employee joined in the 16th day of the month
- Employee Left 16th day of the month
- Employee Joined for 1 day and Left
—> Considering Base salary for this Employee 15K
—————————
How can we pay this Employee in the 2 Examples for each case ?!
Thanks in Advance.
I’m not familiar with Egyptian payroll. Your description sounds much like “monthly payroll, not based on working days” in ERPNext.
Is it true that employees are paid a monthly salary 12/annualSalary?
Yes, the Law says that Employee will be paid a fixed amount per month regardless of month calender days as if all months are 30 days, so this also includes calculations of:
1- Deductions (Absent - LWP) —> base / 30 = daily wage , then the deduction formula will be
absent amount = (base / 30) absent_days
lwp amount = (base / 30) *lwp_days
2- Earnings (Double Paid Days - OverTime):
double paid amount = (base / 30) work_on_holiday_days
overtime amount = ((base / 30) / 8 ) * overtime_hours
—————————-
The law is based on the principle of entitlement:
So if an Employee is Hired or Resigned within the month he/she will be paid the amount of days he worked actually considering in total the Weekly Offs and Public Vacations and Paid Leaves as Paid Days
1 Like
@rmehta
can you please help ?!
Does the government “spell out” how to perform the calculation based on
days in the month and actual days worked for the proration? Can you provide
the details on how you’re supposed to determine the prorated amount?
Yes. The Egyptian government indirectly provides guidance on how to calculate the prorated salary through the Labor Law (Law No. 12 of 2003) and the financial regulations commonly applied in Egypt.
The law adopts a fixed principle that the month is always considered as 30 days for wage calculation purposes, regardless of the actual number of days in the calendar month (28, 29, 30, or 31). Based on this:
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The monthly salary remains fixed and does not change with the number of days in the month.
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When prorating a salary for an employee who worked only part of the month, the calculation is done as follows:
Prorated Amount = (Monthly Salary ÷ 30) × Actual Days Worked
This method is used in all relevant cases, such as:
Therefore, the government does not prescribe a complex or alternative calculation formula; instead, it relies on a simple and consistent rule where one day = monthly salary ÷ 30, which is the standard applied across most companies and payroll systems in Egypt.