Dear Shobana,
Minimum wages rate of respective state is calculated only for 26 days and you cannot apply it for 28/29/30/31 days.
If you want, you can show your Basic + DA salary as Minimum wages and HRA and other allowances for calculation of gross Salary.
Attached Karnataka Minimum wages for your reference.
you calculate the same for 26 days and not for 28/29/30/31 days.
From India, Mumbai
188Minimum wages rate of respective state is calculated only for 26 days and you cannot apply it for 28/29/30/31 days.
If you want, you can show your Basic + DA salary as Minimum wages and HRA and other allowances for calculation of gross Salary.
Attached Karnataka Minimum wages for your reference.
you calculate the same for 26 days and not for 28/29/30/31 days.
From India, Mumbai
If an employee is joined on 17 Mar with a salary of 10000/Month how much you pay. Here the employee paydays are 15/31
From India, Hyderabad
From India, Hyderabad
No Dhana, It depends on company to company. All the company’s will not follow the same way. But calculating as per month days (28,29,30,31) is generally accepted anywhere and is appropriate.
From India, Hyderabad
From India, Hyderabad
30 days calculation in all the 12 month i a ear is the best practice, for manager and above cadre no rules will be applicable. as one respected member said 26 days calculation is the base for all workmen related settlements is followed. the basic logic behind 26 days calculation by the govt rules is , in that is paid weekly off is covered .
From India
From India
I have gone through this pitched battle of views on the issue whether a month shall be construed as 28 days or 30 days or 31 days. Thanks to ms.ghr for kicking a an intense debate on a seemingly simple but really an intriguing issue. No doubt, as a member correctly said, no body has put forward his/her views on the basis of the assumptions but only on the basis of the practice followed in their respective companies.No body has, however, provided any legal base in support of their views. Following different yardsticks for a month to arrive at a day's wage has it's own merits and demirts, more so when wages are to be deducted for absence on loss of pay since every penny, as Mr.Shenbagarajan said, matters to an employee.For example, the employer will be deducting more wages for loss of pay in Feb but lesser amount in April and still lesser in May since the calculation of a day's wages varies according to the numbe rof days in a month.This, in my view may not be a prudent method more so as it may create a more anamolous situation in complying with legal requirements like calculating retrenchment compensation.
Sec.25-F of the Industrial Disputes Act provides for calculation of retrenchment compensation at 15 days wages for each completed year of servcie. There were divergent methods adopted by employers to calculate the compensation. Some followed 26 days while others followed 30 days and yet others followed the number of days in the month in which the employee was retrenched.This gave rise to different figures as compensation. This lack of uniform practice led to industrial disputes as to how a month is to be construed for the purpose of arriving at 15 days wages. Setting at rest the conflicting views on the issue, the Supreme Court in Guru Jambeshwar University through Registrar V.Dharam pal 2007 I LLJ 1006, has laid down that the compensation has to be calculated on the basis of one month meaning 30 days but not 26 days.This method can be adopted to bring uniformity and also as a salary for a month is constant and does not vary with the numbe rof days in a month, so also the divider shall be constant for arthimeical accuracy. The formula of 26 days as adopted i the Grauity Act cannot be made applicable here since Grauity Act has specifically prescribed it for calculating gartuity only it being a retiral benfit but not for every kind of benefit.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
Sec.25-F of the Industrial Disputes Act provides for calculation of retrenchment compensation at 15 days wages for each completed year of servcie. There were divergent methods adopted by employers to calculate the compensation. Some followed 26 days while others followed 30 days and yet others followed the number of days in the month in which the employee was retrenched.This gave rise to different figures as compensation. This lack of uniform practice led to industrial disputes as to how a month is to be construed for the purpose of arriving at 15 days wages. Setting at rest the conflicting views on the issue, the Supreme Court in Guru Jambeshwar University through Registrar V.Dharam pal 2007 I LLJ 1006, has laid down that the compensation has to be calculated on the basis of one month meaning 30 days but not 26 days.This method can be adopted to bring uniformity and also as a salary for a month is constant and does not vary with the numbe rof days in a month, so also the divider shall be constant for arthimeical accuracy. The formula of 26 days as adopted i the Grauity Act cannot be made applicable here since Grauity Act has specifically prescribed it for calculating gartuity only it being a retiral benfit but not for every kind of benefit.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
If 1000 GS as per no.of Days in Aug.* Total Paid days and if GS is 30000/- then perday Salary in August is Rs.967.74 coz its 31 day\'s in mnth
From India, Mumbai
From India, Mumbai
Dear member
The formula given by everybody is different becuase every one practices as per the organisation policies. However there is no clarity in labour laws about the payment of salaries when there is an LOP.
The best practice would be to keep a common figure for all the months. This will not only avoid variable calculations for every month but it will also be easy to explain and maintain. So the best option is that the month is considered as 30 irrespective of the actual number of days in the month.
Regards
Preetam Deshpande
From India, Mumbai
The formula given by everybody is different becuase every one practices as per the organisation policies. However there is no clarity in labour laws about the payment of salaries when there is an LOP.
The best practice would be to keep a common figure for all the months. This will not only avoid variable calculations for every month but it will also be easy to explain and maintain. So the best option is that the month is considered as 30 irrespective of the actual number of days in the month.
Regards
Preetam Deshpande
From India, Mumbai
In this thread, people are mixing two distinct points - one day salary for gratuity calculations and one day salary for monthly computation. calculations are different for both.
for gratuity calculations, 30 days is taken as standard.
however for monthly salary calculations, no of days of the month are to be taken i.e. 28, 29, 30 or 31.
Here is a scenario which should make it clear for the readers :
Monthly salary 100,000
no of days in aug - 31.
Some said, it should be taken as 30 days standard.
If for e.g., an employee has taken 2 days unpaid leave, his present days should be treated as 28 days or 29 days? should be deduct the absent days and pay for present of vice versa??
If we say that he should be paid by present days which is
100,000 / 30 * 29 = 96,666
and deduction for 2 days would be
100000 / 30 * 2 = 6,666
Here, the total monthly salary works out to 103,332.
It is obvious that the calculations are wrong somewhere.
Whereas if calculat
From United Arab Emirates, Dubai
for gratuity calculations, 30 days is taken as standard.
however for monthly salary calculations, no of days of the month are to be taken i.e. 28, 29, 30 or 31.
Here is a scenario which should make it clear for the readers :
Monthly salary 100,000
no of days in aug - 31.
Some said, it should be taken as 30 days standard.
If for e.g., an employee has taken 2 days unpaid leave, his present days should be treated as 28 days or 29 days? should be deduct the absent days and pay for present of vice versa??
If we say that he should be paid by present days which is
100,000 / 30 * 29 = 96,666
and deduction for 2 days would be
100000 / 30 * 2 = 6,666
Here, the total monthly salary works out to 103,332.
It is obvious that the calculations are wrong somewhere.
Whereas if calculat
From United Arab Emirates, Dubai
I'm working on Payroll from more than 4yrs now and worked for different companies in Payroll dept. I'm sure after my post there will be a chain follows saying we calculate in in different way and many more.
But just above this there is a post which was explained my myself and other members of the forum.
Per day salary is different and per day wage is different.
Salary should always be calculated on no of days for that particular month. Some say 30 days is standard to avoid confusion. It is easy if we know how the calculation are done and can be clarified to the confusion.
Regards,
From India, Hyderabad
But just above this there is a post which was explained my myself and other members of the forum.
Per day salary is different and per day wage is different.
Salary should always be calculated on no of days for that particular month. Some say 30 days is standard to avoid confusion. It is easy if we know how the calculation are done and can be clarified to the confusion.
Regards,
From India, Hyderabad
Dear All,
Pls try to avoid what you follow, because where presently i'm working is also following a different format. It is how we adjust to the payroll method the company is following.
But calculating per day salary should always be on no of days i.e. 28,29,30 & 31 for exact payments/deductions.
Pls continue to follow your company process but donot force on other members that this is the correct method since you are following.
Regards,
From India, Hyderabad
Pls try to avoid what you follow, because where presently i'm working is also following a different format. It is how we adjust to the payroll method the company is following.
But calculating per day salary should always be on no of days i.e. 28,29,30 & 31 for exact payments/deductions.
Pls continue to follow your company process but donot force on other members that this is the correct method since you are following.
Regards,
From India, Hyderabad
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