For any Pvt. Ltd. of Ltd. companies - Regarding the calculation of monthly salary payment -
Whether monthly gross salary has to be divided by 1) The number of days in that month for which salary is being paid OR 2) to be divided by 26 days?
Need expert opinion with Rules & Acts.
Please help!!
From India, Calcutta
Whether monthly gross salary has to be divided by 1) The number of days in that month for which salary is being paid OR 2) to be divided by 26 days?
Need expert opinion with Rules & Acts.
Please help!!
From India, Calcutta
Average daily wages/salary varies from Act to Act and situation to situation. For the purpose of calculation of gratuity payable, he average daily rate of salary is arrived at by dividing the total salary by 26. The salary for the purpose of deciding the compensation payable on retrenchment may be calculated by dividing the monthly salary by 30. There are differences of opinion among the Judges also in this matter. in Trade Wings Ltd Vs Prabhakar Dattaram Phodkar [1993(III) LLJ(Suppl)299 Bom] it was decided that retrenchment compensation u/s 25F should be calculated by dividing the monthly salary by 26 and not by 30. But in a later judgment, [ Guru Jambheshwar University, Hisar Vs Dharam Pal (2007) 1 LLJ 1006 (SC)] the average pay under section 25F of I D Act means wages paid in 3 months immediately preceding retrenchment divided by 3 and principle of 26 days followed for calculation of gratuity under Payment of Gratuity Act is not applicable for determination of retrenchment compensation.
Coming to the wages for calculating overtime wages, it is monthly wages divided by 26. Similarly, for calculating leave encashment, you should take monthly wages divided by 26.
Nothing above referred will be applicable to persons in the managerial capacity.
From India, Kannur
4239Coming to the wages for calculating overtime wages, it is monthly wages divided by 26. Similarly, for calculating leave encashment, you should take monthly wages divided by 26.
Nothing above referred will be applicable to persons in the managerial capacity.
From India, Kannur
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Gross Salary(1).xls