The minimum wage calculations released by various state governments state that the MW monthly rate is based on 26 working days. (Refer to point 3 on page 8 of the MW notification released by the West Bengal government in the attachment).
Does this interpretation mean that there is no pay given for the weekly off/rest day to the employees? Is there any gazette or notification that supports this calculation?
Request guidance on this interpretation of the law.
From India, Pune
Acknowledge(0)
Amend(0)
Does this interpretation mean that there is no pay given for the weekly off/rest day to the employees? Is there any gazette or notification that supports this calculation?
Request guidance on this interpretation of the law.
From India, Pune
Acknowledge(0)Amend(0)
The notified minimum wages of a day are arrived at by dividing the monthly wages by 26, which means the payment for weekly holidays is already included. In fact, the daily wages are actually the wages for 1+1/6 days, so in six days' wages, automatically the seventh-day wage also accrues.
From India, Mumbai
Acknowledge(0)Amend(0)
1656From India, Mumbai
Acknowledge(0)Amend(0)
Please go through the proviso to the Sub Rule (4) of Rule 23 of the Minimum Wages (Central) Rules, 1950 which has clearly mentioned that "Provided that where the minimum daily rate of wages of the employees as notified under the Act has been worked out by dividing the minimum monthly rate of wages by twenty-six, or where the actual daily rate of wages has been worked out by dividing the monthly rate of wages by twenty-six and such actual daily rate of wages is not less than the notified minimum daily rate of wages of the employee, no wages for the rest day shall be payable. In case the employee works on the rest day and has been given a substituted rest day, he shall be paid only for the rest day on which he worked, an amount equal to the wages payable to him at the overtime rate which is double the ordinary rate of wages.
It means the per day wages fixed by the appropriate government include the wages of the weekly rest day, and therefore every state government or central government specifies in their notification that to arrive at per day wages, the monthly rate of wages is to be divided by 26. Many companies are making the mistake of dividing the monthly rate by the number of days in a month, i.e., 30 or 31. This affects workers who have worked for less than 26 days. This is a violation of the Minimum Wages Act. When the appropriate government has clearly mentioned in their notification how to calculate per day wages for a monthly paid worker, we have to follow the said rule as the powers are delegated under the Minimum Wages Act to the concerned authority who is empowered to fix minimum wages and also to declare DA at certain intervals. The said order of the appropriate government is the notification supporting the calculation.
From India, Pune
Acknowledge(0)Amend(0)
It means the per day wages fixed by the appropriate government include the wages of the weekly rest day, and therefore every state government or central government specifies in their notification that to arrive at per day wages, the monthly rate of wages is to be divided by 26. Many companies are making the mistake of dividing the monthly rate by the number of days in a month, i.e., 30 or 31. This affects workers who have worked for less than 26 days. This is a violation of the Minimum Wages Act. When the appropriate government has clearly mentioned in their notification how to calculate per day wages for a monthly paid worker, we have to follow the said rule as the powers are delegated under the Minimum Wages Act to the concerned authority who is empowered to fix minimum wages and also to declare DA at certain intervals. The said order of the appropriate government is the notification supporting the calculation.
From India, Pune
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
MW Rate construction July 18.pdf