How to Calculate Per Day Salary: 26 vs 30 Day Basis

Per day salary is the building block for loss of pay, partial months, notice pay recovery, leave encashment and overtime. Indian employers use four bases for it, and the choice changes real money: the same monthly salary gives different daily figures and different results for the same employee. This guide shows each basis with one salary, where each tends to be used, a worked example across three uses, and how to settle on one rule for your policy.

Four ways to calculate per day salary

Take a monthly gross of ₹36,400 and compare the bases in two months: October 2026, with 31 days and 27 working days from Monday to Saturday, and September 2026, with 30 days and 26 working days. The same employee losing one day's pay loses anything between ₹1,174.19 and ₹1,400 depending on the rule, a gap of ₹225.81 for a single day.

Fixed 26 days: ₹36,400 / 26 = ₹1,400 in every month.
Fixed 30 days: ₹36,400 / 30 = ₹1,213.33 in every month.
Calendar days: ₹36,400 / 31 = ₹1,174.19 in October and ₹36,400 / 30 = ₹1,213.33 in September.
Working days: ₹36,400 / 27 = ₹1,348.15 in October and ₹36,400 / 26 = ₹1,400 in September.

Where each basis fits

The 26-day basis treats Sundays as paid rest days and values each working day at its share of the month, which suits six-day workplaces. The 30-day basis is simple and easy to explain, which suits offices. The calendar basis is the most exact for proration, since a 31-day month pays slightly less per day than a 28-day month. The working-days basis pays strictly for working days, but its value swings from month to month. Gratuity follows its own rule of 15 days' wages for each completed year on the last drawn wages, so use the gratuity calculator for that rather than your LOP divisor.

Worked example: one employee, three uses

Sneha, a quality inspector in Hosur with a gross of ₹36,400, takes 2 days of leave without pay in October 2026, later resigns 10 days short of her notice, and has 6 days of earned leave to encash at exit. If the policy uses a fixed 26-day basis on gross for everything, her per day salary is ₹1,400: LOP of 2 x ₹1,400 = ₹2,800, a notice shortfall of 10 x ₹1,400 = ₹14,000 where the appointment terms allow recovery, and encashment of 6 x ₹1,400 = ₹8,400. On a 30-day basis the same three figures are ₹2,426.67, ₹12,133.33 and ₹7,280. Mixing bases, such as 26 days for recoveries and 30 days for encashment, always favours the company and invites disputes.

Choosing one rule for your policy

Pick one basis and use it for LOP, partial months, notice pay and encashment, unless the policy states a clear reason for a different one. Write the basis and the components it applies to in the salary policy and appointment letters, so employees can check their own payslips. If you change the basis, do it from the start of a financial year with notice, because it changes every employee's deductions. Overtime has its own rule: the hourly rate comes from the ordinary wage, and overtime is paid at twice that rate.

Step by step

List every use of a daily rate. Note where payroll needs a per day figure: LOP, joiners and leavers, notice pay, leave encashment and the hourly rate for overtime.
Compare the bases on real salaries. Work out the per day figure for a few actual salaries on each basis, and see the effect over a year of LOP days and exits.
Choose one basis. Pick the basis that fits your working week and is easy to explain, and use it everywhere unless there is a written reason not to.
Fix the salary components. State which components each daily rate uses, such as gross for LOP and basic plus DA for leave encashment.
Write it into policy and letters. Put the basis in the salary policy and appointment letters, with one worked example employees can follow.
Set it in the payroll system. Configure the same basis for every run. ZeniaHR's deduction policy offers working days, calendar days or a fixed 30, 26, 24 or 22 days, with branch overrides where a branch needs a different rule.
Change it only with notice. If you ever change the basis, announce it in advance and apply it from the start of a financial year.

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Frequently asked questions

How do you calculate per day salary?

Divide the monthly salary by the divisor in your policy: 26, 30, the calendar days in the month or the working days in the month. For a gross of ₹36,400, one day is ₹1,400 on a 26-day basis and ₹1,213.33 on a 30-day basis. Use the same basis every month and state it in writing.

Why do companies use 26 days for per day salary?

A 26-day basis assumes a six-day week with Sundays as paid rest days, so a month has about 26 working days. Dividing by 26 values each working day at its share of the monthly salary. It suits factories and six-day workplaces, while five-day offices often prefer a 30-day or calendar-day basis.

Is per day salary calculated on gross or basic?

It depends on the purpose and your policy. LOP and partial months are normally worked out on gross, reducing each component in proportion. Leave encashment is often on basic plus DA, and overtime uses the ordinary wage. State the component for each purpose in the salary policy so nobody argues it later.

Should the per day salary change every month?

Only on a calendar-day or working-day basis, where the divisor changes with the month. A fixed 26 or 30-day basis keeps the per day figure the same all year. Either is workable; what matters is using one basis consistently and stating it in writing.