What is the basis for salary computation in an organization?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Number of working days, pay grade rate, allowances, and deductions.
Every employee is paid salary on a pre-determined date within the framework of employee contract and related personnel policy in force from time to time in an organisation. The computation of salary payment is based on the number of days an employee has worked, rate per grade of pay, rate of applied allowances and deductions to be made therefrom.