Dear All,
Can anyone give me worker calculation? I have confusion in overtime whether it should be calculated based on 26 days or 30/31/28/29 days. Our company pays unskilled workers 2652 per month as wages, and it is also on a CTC basis. Is this the correct method of wage calculation or not?
Regards,
Pranav Patel
9879555676
From India, Ahmadabad
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Can anyone give me worker calculation? I have confusion in overtime whether it should be calculated based on 26 days or 30/31/28/29 days. Our company pays unskilled workers 2652 per month as wages, and it is also on a CTC basis. Is this the correct method of wage calculation or not?
Regards,
Pranav Patel
9879555676
From India, Ahmadabad
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Dear Pranav,
Once you describe the associate as an employee, the payment days (monthly payment) should be divided by 26, and they cannot be on a CTC basis. For regular employees on CTC, we deduct ESI and PF share from their CTC. However, the laws are very clear that the employer's share of contributions cannot be deducted from the employee's salary.
Most companies are hiring only staff (white-collar jobs) on CTC and not the employee force (blue-collar grade).
Regards,
R. Sudhakar
From India, Madras
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2Once you describe the associate as an employee, the payment days (monthly payment) should be divided by 26, and they cannot be on a CTC basis. For regular employees on CTC, we deduct ESI and PF share from their CTC. However, the laws are very clear that the employer's share of contributions cannot be deducted from the employee's salary.
Most companies are hiring only staff (white-collar jobs) on CTC and not the employee force (blue-collar grade).
Regards,
R. Sudhakar
From India, Madras
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dear pranav mr sudhakar is abosolutely right.for ot calculation u have to divide by 26 only. tks j s malik
From India, Delhi
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From India, Delhi
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Hi Pranav,
You are right, but for the past year, my company has covered workers' wages on a CTC basis. We have around 800 workers in the Daman unit. They only receive around 2200 in hand for 8 hours, and their overtime is calculated based on 31/26/29/30 days. Therefore, a bad system is currently in place.
I also understand the situation, but I am unsure of how to address this with my management who implemented these policies.
Pranav
From India, Ahmadabad
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You are right, but for the past year, my company has covered workers' wages on a CTC basis. We have around 800 workers in the Daman unit. They only receive around 2200 in hand for 8 hours, and their overtime is calculated based on 31/26/29/30 days. Therefore, a bad system is currently in place.
I also understand the situation, but I am unsure of how to address this with my management who implemented these policies.
Pranav
From India, Ahmadabad
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Dear Pranav,
It's not always correct to calculate based on 26 days as per the law, but many companies are engaging in the bad practice of calculating based on 31/30/28/29... This is a flawed system.
You can discuss this with your management, but I doubt they will agree.
Jai Bakshi
9868178047
From India, Delhi
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It's not always correct to calculate based on 26 days as per the law, but many companies are engaging in the bad practice of calculating based on 31/30/28/29... This is a flawed system.
You can discuss this with your management, but I doubt they will agree.
Jai Bakshi
9868178047
From India, Delhi
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CTC CALCULATION SHEET.xls
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf