Per-day salary = monthly salary ÷ the days your policy uses: the days in the month (31 in October), 30, or the working days. LOP deduction = per-day salary × unpaid days. For ₹25,000 and 2 LOP days in October 2026: ₹806.45 a day and ₹1,612.90 deducted on calendar days, ₹1,666.67 on 30 days, or ₹1,923.08 on 26 working days. Section 20(2) of the Code on Wages, 2019 says the deduction cannot be a larger share of wages than the absent days are of the days the employee was required to work, so the working-days figure is the most you can deduct.
Three ways to work out per-day salary
| Method | Per-day salary on ₹25,000 (October 2026) | Deduction for 2 LOP days | Salary payable |
|---|---|---|---|
| Days in the month (31) | ₹806.45 | ₹1,612.90 | ₹23,387.10 |
| 30 days | ₹833.33 | ₹1,666.67 | ₹23,333.33 |
| Working days (26) | ₹961.54 | ₹1,923.08 | ₹23,076.92 |
The calendar-day method gives the smallest deduction in a 31-day month and the largest in February (₹1,785.71 for 2 days in a 28-day month). Many employers choose it because weekly offs are paid; others use 30 days so the per-day rate does not change each month.
What the law says about deductions for absence
Section 18 of the Code on Wages, 2019 allows deductions for absence from duty, and section 20 sets the limit: the deduction may not bear a larger proportion to the wages for the wage period than the period of absence bears to the total period within that wage period that the employee was required to work. In plain terms, if someone was required to work 26 days and missed 2, you may cut at most 2/26 of the month's wages.
Where ten or more employees, acting together, stay away without notice or reasonable cause, the Code allows a larger deduction of up to eight days' wages, subject to State rules. That is a special case and should be decided with advice.
Worked example: joiners, leavers and half days
- Joined on 10 October 2026 on ₹22,000 (calendar-day method): paid for 22 of 31 days: ₹22,000 × 22 ÷ 31 = ₹15,612.90.
- Half-day absence: enter 0.5 days. On ₹25,000 in October that is ₹403.23.
- Leaving on 15 October 2026: pay 15 days, then settle leave encashment and dues in the full and final settlement format.
After LOP, check the month's PF and ESI on the reduced wages with the PF calculator and ESI calculator, and that pay for days worked is not below the State rate on minimum wages by state.
Let attendance decide LOP
Most LOP disputes are about which days were absent, not about arithmetic. FundRaksha HR takes attendance on the employee's own phone inside the office radius, applies approved leave and holidays, and works out paid days and LOP automatically before payroll is locked, with PF, ESI and professional tax. See also how to calculate salary from attendance and the FundRaksha HR guide to per-day salary and LOP.