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Dear sir, what is the reason behind some industries calculate salary on 26 days, whereas some industries on 31 days. what does the legal acts says about this.
8th July 2010 From India, Bangalore
the workers who are on daily wages basis then their salary is calculated for 26 days which is excluding 4 weekly offs, and for staff it is calculated on monthly basis in which weekly offs are paid.
8th July 2010 From India, Pune
Bit what if staff is also getting paid only for 26 days. Is it management strategy? Is it illegal? Plz reply...
9th July 2010 From India, Pune
hii Anpat,
SAME IS WAT I WANT TO ENQUIRE. As in my comapny also we are being paid on 26 days calculation !!! Seniors , kindly suggest is it illegal..n if yes, wat can be done in this regard..
Thanks & Regards,
Priyanka Sharma
9th July 2010 From India, Ahmadabad
If u r working on Monthly Basis, u get salary on the Basis of 30 or 31 days and if u r worinkg on Daily Basis, u get salary on the Basis of 26 Days.
i.e. Your monthly Salary(Basic + HRA + Other Allow.) is Rs. 12000 means ur per day salary(Jun) = 12000 /30= 400 Rs.
9th July 2010 From India
Hai... If monthly salary is 12,000 (B.S+HRA+ Other Allow). then for 30 days it will be calculated as 12000/30. For 31 days should we calculate as 12000/31? I need clarification.
9th July 2010 From India, Hyderabad
There are no laws on this but would stand corrected if anyone is able to point out to an exact law - you can define your company policy and the best way to do is to calculate the total number of working days per annum after deducting for weekly offs, national and regional holidays and leaves which the employee is eligible for. The remainder is your number of working days
365 - 52 sundays - 12 holidays - 10 casual leaves - 10 medical - 10 earn leave = 271
ie average monthly working days = 271 / 12 = 22.5 so you decide and take 23
now if the monthly salary is 15000 then daily salary would be 15000/23. The good thing about this calculation is that the daily salary does not change between feb (28-29 days) and dec 31 days and that is the way it should be otherwise calculating leave without pay or other deductions would be very very difficult.
As long as you are fair and transparent Employees should not have any problem.
9th July 2010 From India, Delhi
Dear All,
Calculation of salary on 26 days is also legal as well as 30 or 31 days. In earlier case the weekly offs are not counted hence whether a person is absent for a week or more his weekly off are not taken into account while calculating salary. for example in case of calculation by 26 days, if an employee takes leave for six working days excluding weekly off then salary calculation will be = salary/26*20 days.
In 30 or 31 days calculation case if a person is absent for more than half of working days of the week or on saturday and monday both days then he forfeits his weekly off and weekly off is also taken as absent and his salary calculated accordingly. Exam a person is absent on saturday and monday both days then his total absence is 3 days which include sunday (Weekly off) also. It depends upon company to company which rules they follow. i.e. more than half of working days in a week or saturday and monday.
9th July 2010 From India, New Delhi
Dear Kiran,
There is one logic behind 26 days and 30 days salary. This is only company tactics those who are working under service cader, Supervisors, Managers and Executives they are comes under this 30 days, because these employees are not getting OT even if they work more than 8hrs or 10hrs. For workers we are paying on basis of 26 days with OT.
Over all as per the law it is 26 days Ex: Gratuity calculation.
Lokesh H R
9th July 2010 From India, Bellary
Dear all,
Calculation of salary for 26 or 30, what will be if a month containts ony 30 days and other containts 31 days. so its better to see the number of working days in that particular month and calculate accordingly.
9th July 2010 From India, Bangalore
Dear all
The wage determination for workmen is as per the Minimum Wages Act. Whenever state (in some states refer relevant state rules) notifies circular on minimum wages and the wages are so calculated that the wage includes sunday wages also.
I,e if daily rate is 230.50 for an unskilled category, working for 26 days, it includes the 4 or 5 Sunday wages and the employer need not pay for the Sundays.
For supervisor level it depends on comapnys policy.
9th July 2010 From United States
you just simply see the state govt. or central govt. notification (as applicabale)wherein it will be clearly specified wheteher the wages will be calculated on the basis of 31 days or 26 days.
10th July 2010 From India, Vijayawada
Act clearly says salary or wages for 26 working days. Same is used for gratuity calculation etc. More benefit-- four off with pay etc.-- if provided by the employer is always welcome by the law; anything less will put the law into action for violation. But in any case the minimum wage should be there whether it is payable for 26 or 30 days. Hope it is clear to u.
10th July 2010 From United States, Cambridge
Whatever formula service conditions provide for for which the employee consented is legal subject to Labour Laws in force.Government employees get salary for 30/31 days in a month( other than February) being treated on duty on Sundays and holidays.Besides they are entitled to paid casual leave and earned leave ( at the rate of 1 day for every 11 days of work attended to).They can also encash earned leave periodically and at the time of retirement.Thus Government employees in effect get salary for more days than they work for.
10th July 2010 From India, Hyderabad
I agree that for gratuity calculation the number of working days is 26 per month. But if a company is working on five days a week and then including holidays and leaves the total number of working days in the month will actually be around 20. In such a scenario taking 26 as a basis for calculating averaging daily salary for Leave without pay deductions or Leave encashments is going to be erroneous.
10th July 2010 From India, Delhi
Dear All,
In our company we divide annual salary by 365 days or 366 whichever applicable which gives per day salary.
This per day salary is kept common whichever month (31/30/28/29) it maybe.
If an employee has taken 5 days unpaid / unauthorised leave in month of Feb (28 days) he is paid 28-5=23*per day salary.
10th July 2010 From India, Delhi
dear all
1. Minimum Wages
1.1. it has become a practice to follow the minimum wage notifications where the salary is
shown as 26 days basis.
1.2. however this notification is mean only as a guideline to the quantum of wages to be paid
per day as minimum wages.
1.3. industries who pays minimum wages to their workers should pay heed to this practice that
if the worker works for the whole month they must be paid for those days on pro-rata
basis on which their entitlement for weekly off is established i.e for working on 6 days and
getting a days off with pay
2. Permanent Employee
2.1. Their entitlement to all statutory leaves are legal rights
2.2. The Salary towards these employees ae for all 31(30) days
2.3. The basi of calulation of their salary thus made by dividing the salary by 31(30) days
3. Gratuity
3.1. It is a coverage given for working the complete 5 years which includes the weekly off
3.2. Thus the calculation is made on 26 days basis.
best regards,
Asitabha Sanyal
10th July 2010 From India, Delhi
As per factory Act rules in any Factory payment is to be calculated on working days basis i.e. month days minus weekly off i.e. 26 or 27 or 25 for that particular month. even for Gratuity calculation per day salary is calculated on salary divided by 26 days.
So that for calculation of Leave with wages per day salary is to be divided by 26.
So it is not illegal.
10th July 2010 From India, Nagpur
The Difference can be seen in two perspectives
Company's point of view: following 31/30 days system
Manpower cost per day will be reduced and all 31 days including holidays are paid.
Company can get a goodwill from employees that their Sundays / holidays are also paid.
Employee point of view: following 31/30 days system
As salary is calculated on 31 day basis, any LOPs will be considerably less when compared with a 26 days system. [ex say salary is 30K lop for 1 day is Rs.1000 under 30 days system, whereas if it is 26 days then LOP for 1 day will be Rs.1153]
As far as i know there is no legal bounds in this. You can decide what you want to follow.
10th July 2010 From India, Hyderabad
I agree with this.. I also share the same... Any encashment or LOP should be justifiable for both employer and employee respectively... -Dinesh
10th July 2010 From India, Hyderabad
daily wages is calculated by 26days because 313days in a year. *365-52 weekly off =313 *313/12months =26 average days in a month P.K. SHARMA
10th July 2010 From India, Delhi
Please refer to the Minimum Wages Act, you will get your answer. For those who have posted their wrong inputs. "No knowledge is better than little knowledge". Inputs like this may divert the main purpose.
10th July 2010 From India, Calcutta
TO all concerned,
I think there is lot of confusion to the 1st question.
Now a days most of companies closes their attendance by 25th and starts salary processing.
In such event a person joins on 1st june will get salary only for 25 days.The normal argument of HR is in next month he will get 26th june to 25 july and hence full salary is being paid.
but the hidden fact is the 5 days salary of ist month ie June reamins unpaid and always with management.
this totaly wrong but not illeagl.
The best way is close the attendance by 25th but calculate salary till 30th and any loss pay of 26th to 30th will be adjusted in next month salary
10th July 2010 From India, Madras
As per the regular practice is taking 26 days per month even u take 30/31 days mean wt it express LOP may less if the employee has taken more leave/absent.
In 26 means it s little high Mgt favour one. so normally follow this procedure (Include February also)
13th July 2010 From India, New Delhi
Dear Sir, Our company follows 30 working days .But in july month 31 days if some one has absent in july month how can i calculte his salary. Please give me advise Thanks, Ram
3rd September 2010 From India, Hyderabad
If in my office calculate attendence for salary from 26th january to 25th feb so how to calculate days for salary 31 day or 28 days because january month of 31 days and february month of 28 days so what i will do please let me know.....
18th February 2013 From India, Pune
Hi Friends,
Please note that the concept of 26 days is considered based on the below:
total no. of days in a year = 365
Total Week off on every 7th Day in a year = 53 Days
365-53 = 242 Days
242 / 12 (months)
Please correct if I am wrong.
17th November 2018 From India, Hyderabad
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