LOP Calculation: Divide Salary by 26, 30 or Days in Month?

Short answer: loss of pay (LOP) is the salary for the days an employee was absent without paid leave. You work out a day's pay by dividing the monthly salary by a divisor, then multiply by the LOP days. Indian employers use four divisors: the days in the month (28 to 31), a fixed 30, a fixed 26, or the month's working days. No single one is required by law for monthly salary; what matters is that you choose one, write it into your policy, and use it every month.

The four divisors

Divisor	What it means	Effect
Days in the month	28, 29, 30 or 31; weekly offs and holidays count as paid days	A day costs more in February than in October
Fixed 30	Every month is treated as 30 days	The same per-day rate all year; the most common choice
Fixed 26	30 days less four Sundays	The largest per-day rate among the fixed options
Working days	Only the days the office is open that month	Correct only where weekly offs are genuinely unpaid

The figure 26 reaches payroll by copying. It is the divisor the law uses for gratuity (15 days' wages per year, with a month counted as 26 days) and many firms use it for leave encashment. Applied to monthly salary, it charges an absent employee more per day than a 30-day or calendar-day policy does. See our gratuity formula guide for where 26 does belong.

One absent day, four answers

Asha earns ₹30,000 a month and was absent without leave for 2 days in October 2026, a 31-day month. Her office is closed on Sundays, so October has 27 working days.

Divisor	Per-day salary	LOP for 2 days	October pay
Days in the month (31)	₹967.74	₹1,935	₹28,065
Fixed 30	₹1,000.00	₹2,000	₹28,000
Working days (27)	₹1,111.11	₹2,222	₹27,778
Fixed 26	₹1,153.85	₹2,308	₹27,692

In February the calendar-day divisor drops to 28 and the same day costs ₹1,071. That swing is the main reason many firms pick a fixed 30: the employee can work out their own deduction without a calendar.

The mistake that pays everyone 73%

The divisor and the day count must describe the same set of days. Divide by 30 or by the days in the month, and weekly offs and holidays are paid days. Divide by working days, and they are not. The classic error mixes the two: divide by 30, then count only the 22 days someone was present at the office. A person with perfect attendance receives 22 ÷ 30 = 73% of their salary.

The safe way to compute pay is subtractive. Start from the full divisor and take off only the days that were explicitly lost: an unpaid absence costs one day, a half day costs half. Full attendance then always gives full pay, whatever divisor you chose.

What counts as an LOP day

• Absent with no leave balance or approval: one LOP day.
• Half day: half a day, if your policy treats it as unpaid.
• Unpaid leave that was approved: still LOP. Approval makes the absence authorised, not paid.
• Weekly off or holiday: not LOP under a 30 or calendar-day divisor.
• No attendance record at all: treat it as missing data, not as an absence. Check with the manager before deducting. Docking pay because someone forgot to punch in is the most common payroll complaint.

Under the Code on Wages, 2019, a deduction for absence must be in proportion to the period of absence, and all deductions in a wage period together cannot exceed half of the wages. Our guide to CTC, gross and in-hand salary explains which components are usually prorated.

Which divisor should you choose?

For most small offices, fixed 30 is the easiest to explain and to check. Choose days in the month if you want pay to track the calendar exactly. Use working days only if your weekly offs really are unpaid, which is unusual for monthly staff. Whatever you choose, put it in the appointment letter and on the payslip ("Paid days: 29 of 31").

How Grovia handles it

In Grovia's payroll, the divisor is a setting with all four options (calendar days by default). Paid days are worked out subtractively from attendance: a day marked absent or unpaid leave costs one day, a half day costs half, and a day with no attendance record is paid. HR can correct the days on a draft payslip before it is final, and the change is recorded with who made it.

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Checked on 3 November 2026. The labour codes came into force on 21 November 2025 and several states are still notifying their rules; confirm your state's position with your CA or labour consultant before you change a policy.

Frequently Asked Questions

How is loss of pay calculated in India?

Divide the monthly salary by your policy's divisor (the days in the month, 30, 26 or the working days) to get a day's pay, then multiply by the number of unpaid absent days and deduct that amount.

Is salary calculated on 26 days or 30 days?

Either is allowed for monthly salary as long as the policy is clear and applied consistently. 26 is the statutory divisor for gratuity; for salary it gives a larger deduction per absent day than 30.

Are Sundays counted in loss of pay?

Not under a 30-day or calendar-day divisor, because weekly offs are already paid days in those methods. Some firms treat a weekly off between two unpaid absences as LOP; that is a policy choice and must be written down.

Can an employer deduct salary for a day with no attendance record?

A missing record is not proof of absence. Confirm with the employee or manager first, and deduct only days that were actually unpaid absences.

Is there a limit on salary deductions?

Under the Code on Wages, 2019, the total of all deductions in a wage period cannot exceed 50% of the wages, and a deduction for absence must be proportionate to the time absent.