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Question 1141328: Basic Salary of an employee is Rs. 18,000 and Allowances are Rs. 9000. According to the company’s policy casual leaves are 12 days per year and earned leaves are 24 days per year and normal working days are 22 per month. Find the total cost of leaves as percent of gross salary?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! there are 22 normal working days per month.
this implies that days off are included in this total.
the total number of normal working days during the year would therefore be 12 * 22 = 266.
the total salary of an employee is presumed to be the basic salary plus allowances.
that would make the total salary equal to 18000 + 9000 = 27000.
if there were no days off, the cost to the company per normal working hour would be 27000 / 266 = 101.5037594.
if the employee is allowed 12 casual days off plus 24 earned days off during the year, then the employee is allowed 36 total days off during the year.
the cost to the company of these unproductive days would be 36 * 101.5037594 = 3654.135338.
that is how much the company is paying the workers during their days off.
the cost of days off as a percent of gross salary is equal to 3654.135338 / 27000 = .1353383459 * 100 = 13.53383459%.
you could also have gotten the same percentage by just dividing the total number of normal working days by the total number of days off, since the cost per normal working day was applied to the number of days off to get the total cost of days off.
36 / 266 = .1353383459 * 100 = 13.53383459%.
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