diff --git a/erpnext/hr/doctype/leave_application/test_leave_application.py b/erpnext/hr/doctype/leave_application/test_leave_application.py
index 99e001ab27a..9f263e2a17e 100644
--- a/erpnext/hr/doctype/leave_application/test_leave_application.py
+++ b/erpnext/hr/doctype/leave_application/test_leave_application.py
@@ -1105,7 +1105,7 @@ def allocate_leaves(employee, leave_period, leave_type, new_leaves_allocated, el
 	allocate_leave.submit()
 
 
-def get_first_sunday(holiday_list, for_date=None):
+def get_first_sunday(holiday_list="Salary Slip Test Holiday List", for_date=None):
 	date = for_date or getdate()
 	month_start_date = get_first_day(date)
 	month_end_date = get_last_day(date)
diff --git a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
index e33f8cce4c4..555d2da409f 100644
--- a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
@@ -1032,6 +1032,43 @@ class TestSalarySlip(FrappeTestCase):
 		components = [row.salary_component for row in new_ss.get("earnings")]
 		self.assertNotIn("Statistical Component", components)
 
+	@change_settings(
+		"Payroll Settings",
+		{"payroll_based_on": "Attendance", "consider_unmarked_attendance_as": "Present"},
+	)
+	def test_statistical_component_based_on_payment_days(self):
+		"""
+		Tests whether component using statistical component in the formula
+		gets the updated value based on payment days
+		"""
+		from erpnext.hr.doctype.leave_application.test_leave_application import get_first_sunday
+		from erpnext.payroll.doctype.salary_structure.test_salary_structure import (
+			create_salary_structure_assignment,
+		)
+
+		emp = make_employee("test_statistical_component@salary.com")
+		first_sunday = get_first_sunday()
+		mark_attendance(emp, add_days(first_sunday, 1), "Absent", ignore_validate=True)
+		salary_structure = make_salary_structure_for_payment_days_based_component_dependency(
+			test_statistical_comp=True
+		)
+		create_salary_structure_assignment(
+			emp, salary_structure.name, company="_Test Company", currency="INR"
+		)
+		# make salary slip and assert payment days
+		ss = make_salary_slip_for_payment_days_dependency_test(
+			"test_statistical_component@salary.com", salary_structure.name
+		)
+
+		amount = precision = None
+		for entry in ss.earnings:
+			if entry.salary_component == "Dependency Component":
+				amount = entry.amount
+				precision = entry.precision("amount")
+				break
+
+		self.assertEqual(amount, flt((1000 * ss.payment_days / ss.total_working_days) * 0.5, precision))
+
 	def make_activity_for_employee(self):
 		activity_type = frappe.get_doc("Activity Type", "_Test Activity Type")
 		activity_type.billing_rate = 50
@@ -1151,7 +1188,11 @@ def create_account(account_name, company, parent_account, account_type=None):
 
 
 def make_earning_salary_component(
-	setup=False, test_tax=False, company_list=None, include_flexi_benefits=False
+	setup=False,
+	test_tax=False,
+	company_list=None,
+	include_flexi_benefits=False,
+	test_statistical_comp=False,
 ):
 	data = [
 		{
@@ -1517,7 +1558,7 @@ def make_holiday_list(list_name=None, from_date=None, to_date=None):
 	return holiday_list
 
 
-def make_salary_structure_for_payment_days_based_component_dependency():
+def make_salary_structure_for_payment_days_based_component_dependency(test_statistical_comp=False):
 	earnings = [
 		{
 			"salary_component": "Basic Salary - Payment Days",
@@ -1535,6 +1576,27 @@ def make_salary_structure_for_payment_days_based_component_dependency():
 			"formula": "base * 0.20",
 		},
 	]
+	if test_statistical_comp:
+		earnings.extend(
+			[
+				{
+					"salary_component": "Statistical Component",
+					"abbr": "SC",
+					"type": "Earning",
+					"statistical_component": 1,
+					"amount": 1000,
+					"depends_on_payment_days": 1,
+				},
+				{
+					"salary_component": "Dependency Component",
+					"abbr": "DC",
+					"type": "Earning",
+					"amount_based_on_formula": 1,
+					"formula": "SC * 0.5",
+					"depends_on_payment_days": 0,
+				},
+			]
+		)
 
 	make_salary_component(earnings, False, company_list=["_Test Company"])