Dear Seniors,
Can anybody let me know about the wages rule according to labor law? Whether it should be calculated on the basis of 26 days (4 weekly off) or 30/31 days. Many companies are following the second option, so all are requested to kindly clear the sky on the above-cited subject. Which method is most preferable according to the law? Kindly help.
Thanks,
Neetu Bisht
neetubisht9@gmail.com
From India, New Delhi
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8Can anybody let me know about the wages rule according to labor law? Whether it should be calculated on the basis of 26 days (4 weekly off) or 30/31 days. Many companies are following the second option, so all are requested to kindly clear the sky on the above-cited subject. Which method is most preferable according to the law? Kindly help.
Thanks,
Neetu Bisht
neetubisht9@gmail.com
From India, New Delhi
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Hi,
There is no law on salary calculation. As per the law, three days of continuous work require us to give one day off, so it totals to 26 days of working plus four weekly offs. Both calculations are preferable; according to my knowledge, the second one is better.
From India, Mumbai
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There is no law on salary calculation. As per the law, three days of continuous work require us to give one day off, so it totals to 26 days of working plus four weekly offs. Both calculations are preferable; according to my knowledge, the second one is better.
From India, Mumbai
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Dear Neetu, AS per law, after every 6 days, there should be as Off, which should be as paid holiday.. so, it means 26 +4.
From India, Mumbai
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From India, Mumbai
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Dear Neetu,
It is really an interesting concept / question for which I am looking answer from long back but I haven’t got the clear and crisp answer. However I will just try to give you some justification on it...
If you refer the Indian Legislation's you will come across the discussion on daily wages concept either in Minimum Wages Act or Payment of Wages Act. Apart from this the minimum wages notifications also released across India by the labour and employment dept. into daily and monthly basic wages which clarifies below things.
1) To calculating labour wages, we consider monthly wages for 26 days (excluding Sundays) and accordingly paid to them. However in this case we follow S&E Act, while paying daily wages employee is entitled for 1 day wages for working a week in that subsequent month, which means if an employee doesn't go for holiday except sunday he is entitled for complete minimum wages notified by authority.
2) But when we calculate for employee wages the same minimum wages is to be considered for 30 days (including with Sunday) and accordingly paid to them.
So it is summarized that while paying wages for labour category 26 days should be considered and for worker category it should be considered for 30 days.
I sincerely convey that this justification may be invalid and erroneous and would invite seniors to through some light on it.
Regards,
Janardan
From India, Mumbai
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It is really an interesting concept / question for which I am looking answer from long back but I haven’t got the clear and crisp answer. However I will just try to give you some justification on it...
If you refer the Indian Legislation's you will come across the discussion on daily wages concept either in Minimum Wages Act or Payment of Wages Act. Apart from this the minimum wages notifications also released across India by the labour and employment dept. into daily and monthly basic wages which clarifies below things.
1) To calculating labour wages, we consider monthly wages for 26 days (excluding Sundays) and accordingly paid to them. However in this case we follow S&E Act, while paying daily wages employee is entitled for 1 day wages for working a week in that subsequent month, which means if an employee doesn't go for holiday except sunday he is entitled for complete minimum wages notified by authority.
2) But when we calculate for employee wages the same minimum wages is to be considered for 30 days (including with Sunday) and accordingly paid to them.
So it is summarized that while paying wages for labour category 26 days should be considered and for worker category it should be considered for 30 days.
I sincerely convey that this justification may be invalid and erroneous and would invite seniors to through some light on it.
Regards,
Janardan
From India, Mumbai
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Dear Friends,
A month is any one of the twelve periods of time into which the year is divided. We all know well that a year normally comprises 365 days, but a leap year has 366 days. When we divide 365 or 366 by 12, we get fractional values only, i.e., 30.41 and 30.5 only. However, in the English Calendar, some months have 30 days, some have 31 days, and the month of February has 28 or 29 days. In the Tamil Calendar, some months even have 32 days. Therefore, the number of days a month comprises is a matter of approximation for calculation purposes.
In the field of employment, wages or salary is, in general, the compensation given to the person employed in consideration of the work done by him or her. It may be based on the quantity of work done, piece-rate, or time taken in terms of hours, days, weeks, months, or years, or a combination of quantity and time. It depends upon the nature of work or the nature of the employment relationship. When the employment relationship becomes continuous or permanent, a consistent level of efficiency is expected from the employee, and to maintain it, the wages paid by the employer have to include the day of rest. Therefore, for the sake of convenience of calculation, a month is assumed to have 30 days or 4 weeks (though a week actually has 7 days).
Whether as a matter of religious impact or physical limitation, I don't know why the 7th day after continuous work for 6 days became a day of rest by convention and by law as well. By adding up the 26 days of actual work plus the 4 days of rest, a month is recognized to comprise 30 days as an economic reality for calculation purposes in the realm of employment. Regarding the justification given by Janardhan (with an element of well-founded doubt, of course), I would like to request him kindly to go through Rule 23 of the Minimum Wages (Central) Rules, 1950.
From India, Salem
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A month is any one of the twelve periods of time into which the year is divided. We all know well that a year normally comprises 365 days, but a leap year has 366 days. When we divide 365 or 366 by 12, we get fractional values only, i.e., 30.41 and 30.5 only. However, in the English Calendar, some months have 30 days, some have 31 days, and the month of February has 28 or 29 days. In the Tamil Calendar, some months even have 32 days. Therefore, the number of days a month comprises is a matter of approximation for calculation purposes.
In the field of employment, wages or salary is, in general, the compensation given to the person employed in consideration of the work done by him or her. It may be based on the quantity of work done, piece-rate, or time taken in terms of hours, days, weeks, months, or years, or a combination of quantity and time. It depends upon the nature of work or the nature of the employment relationship. When the employment relationship becomes continuous or permanent, a consistent level of efficiency is expected from the employee, and to maintain it, the wages paid by the employer have to include the day of rest. Therefore, for the sake of convenience of calculation, a month is assumed to have 30 days or 4 weeks (though a week actually has 7 days).
Whether as a matter of religious impact or physical limitation, I don't know why the 7th day after continuous work for 6 days became a day of rest by convention and by law as well. By adding up the 26 days of actual work plus the 4 days of rest, a month is recognized to comprise 30 days as an economic reality for calculation purposes in the realm of employment. Regarding the justification given by Janardhan (with an element of well-founded doubt, of course), I would like to request him kindly to go through Rule 23 of the Minimum Wages (Central) Rules, 1950.
From India, Salem
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The total wages for the month should be equal or above the minimum wages per month whether you give the wages on 26 days or 30 days attendance.
From India, Trivandrum
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From India, Trivandrum
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As per the Minimum Wages Act, wages should be calculated by dividing the monthly wages by 26 days to arrive at the daily wage. Gratuity should also be calculated using the 26-day formula. However, in the case of months with 30 or 31 days, there is no specific written document or section mentioning any alternative calculation method to my knowledge. Therefore, it should be calculated based on 26 days.
From India, Mumbai
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From India, Mumbai
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Sir,
Sh. Umakanthan M in his remarks has referred to Rule 23 of The Minimum Wages (Central) Rules, 1950, wherein the method to calculate the minimum daily rate of wages has been mentioned as dividing the minimum monthly rate of wages by 26. I would like to point out that under Rule 2(1-B) of the ESI (Central) Rules, 1952, there is also a provision for dividing the amount of wages by 26.
However, I would like to mention that a similar subject was previously discussed in detail on this CiteHR platform, with reference to the following post: "Monthly salary to be divided by 30 or 26 days??" https://www.citehr.com/349052-monthl...#ixzz36wuMoALh.
Thank you.
From India, Noida
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Sh. Umakanthan M in his remarks has referred to Rule 23 of The Minimum Wages (Central) Rules, 1950, wherein the method to calculate the minimum daily rate of wages has been mentioned as dividing the minimum monthly rate of wages by 26. I would like to point out that under Rule 2(1-B) of the ESI (Central) Rules, 1952, there is also a provision for dividing the amount of wages by 26.
However, I would like to mention that a similar subject was previously discussed in detail on this CiteHR platform, with reference to the following post: "Monthly salary to be divided by 30 or 26 days??" https://www.citehr.com/349052-monthl...#ixzz36wuMoALh.
Thank you.
From India, Noida
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Working days in a month may be 26/27, where 4/5 weekly offs will fall accordingly as standard practice. Considering the weekly off in question being mandatory as per legislation, it is clear that 26/27 days may be held for calculating wages.
From India, Vadodara
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From India, Vadodara
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Since most of the labor laws like the bonus act, Gratuity, and minimum wages provide for calculation on a 26-day basis, it should always be 26. By doing so, we pay for off-day wages proportionately. In my opinion, it should be 26 days. The Factories Act provides for 1 day off for every 6 days worked. There is no provision for a part off day or off day for less than 6 days of work. Most employers adopt a practice of paying proportionate off-day wages. However, for the calculation of Leave wages, it is again 26 days, as provided in the Factories Act and similar acts. Instead of adopting different methods of calculation, it should be made a standard of 26 days. This stops all kinds of disputes with your wages.
From India, Jamshedpur
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From India, Jamshedpur
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