The information as required:
1. How many days worked by the employee in July 2011
Days worked in July 11: 22 days (from date 1 to 22 July 11 including Two leaves eligible with wages)
2. How many days leave with wages availed in July 2011
Two leaves eligible with wages
3. How many days leave without wages availed in July 2011
4. There is no opening balance of leaves with employee and leaves with wages allowed per month is 2 leaves.
5. How many days of weekly off he had during July 2011
Three Sundays and 3 half Saturdays total 4.5 days (3.0+1.5)
6. What is the law relating to working conditions applicable to the industrial establishment in which the employee was working(like Factories Act, Shops and Establishments Act etc.,)
The Shops and miscellaneous establishment act, Rajasthan is applicable.
7. Wages per month Rs 6000.00
8. No of days in July 11 = 31 Days
9. No of weekly lay off days remaining after 22.07.11 = 2 Sundays and 2 Saturdays = 3.0 days (2.0+1.0)
10. Wages calculation:
Rs 6000.00 – (6000.00*9/31 days) = Rs 4258.00
Rs 6000.00 – (9 Days * Rs 231.00) = Rs 3921.00
Rs 6000.00 – [(9 Days * Rs 231.00) – ( 3.0 paid lay off days * Rs 231.00) = Rs 1386.00] = Rs 4614.00
Please suggest to clear the implication of minimum wages over the wages payment.
One more thing is that, minimum wages are always calculated on Basic +DA ?
Many thanks for responding us in the appropriate manner.
30th July 2011 From India, Jaipur
You have been given the monthly wage rate of the worker as Rs.6000/- To arrive at the daily wage rate of the worker you divide Rs.6000/- by 26. The answer is Rs.231/- This is the daily wage rate of the worker and based on this you have to calculate the wages for 22 days by multiplying Rs231/- by 22. The answer is Rs5082.
30th July 2011 From India, Madras
For daily wage calculation, we divide worker's pay by 26 days whereas for staff's pay, it is divided by 30/31 days as applicable.
30th July 2011 From India, Vadodara
If the manager of the com
pany working on a regular employment at a salary of Rs 60000.00 (Basic salary s 30000.00 + HRA Rs 15000.00 + Rs Conveyance Allowance Rs 10000.00 + Special Allowances Rs 5000.00) for the same scenario; will the salary for 22 days as below:
Daily wages rate: Rs 60000.00/26 = Rs 2308.00
Salary for 22 days = Rs 2308.00 x 22 Days = Rs 50776.00
Please respond to the above query for a better clarity.
2nd August 2011 From India, Jaipur
It is clear that monthly salary dived by maximum days of month but perday earning must be equal to daily minimum wages
Minimum Wages for helper 4503/- per month and 173.19 per day
so in any type of calculation we can not pay him 173.19 for each working days and in between paid holidays in such area
2nd August 2011 From India, New Delhi
My replies in this post is not based on my assumptions but on the law laid down by the Honourable Supreme Court. The monthly salary accepted to be paid at the time of appointment or subsequent revision, whether it is in the case of a "worker" or "employee" or "manager" is the rate of wages. It has been accepted by the Honourable Supreme Court of India that though the wages/salary is termed as "monthly wages" while calculating the "daily rate" the "monthly rate" has to be divided by 26. Therefore to arrive at the daily rate divide the monthly rate by 26 in the case of the manager referred to by you.
4th August 2011 From India, Madras
Two years later in 1921 ILO adopted Convention No.14 declaring that workers in industry shall enjoy weekly holiday of rest comprising at least twenty-four consecutive hours.
Thus workers became eligible for full wage for all seven days by working 48 hours in 6 days.
India was one of the very few countries that promptly ratified these Conventions by amending the Indian Factories, Act 1911 that was in force during those times. The amendment to restrict working hours was notified on 14-07-1921 and weekly holiday was declared through similar amendment notified on 11-05-1923.
There was no need during those times to specifically state that wages should be paid for weekly holiday. Temporary and casual employment to circumvent labour laws became predominant during twenty-first century, especially during that last few decades.
The labour departments and employers have found ways to circumvent the law by weaving a clever ploy of fixation of daily rate of wage claiming that it was arrived at by dividing a monthly figure by 26. The fact on the contrary is that temps and casuals are paid abysmally low wage compared to regular workers. This ploy is against the letter and sprit of law. It does not hold water in cases where daily wage rate is agreed upon independently through negotiation between union representing temporary workers and the employer. Even in such a case, I am encountering a problem where a traditional enterprise metamorphosed as modern global enterprise is harping on right of employer to deny wage on weekly day of rest to casual workers!
18th October 2014 From India, Ernakulam
Good day, I just want to share my case and I hope you can help me.
I was contracted for 2 months, Nov.3, 2014 to Dec. 22, 2014 for 17,000 pesos per month.
my work was Monday to Thursday 8am-6pm and Friday 8am to 5pm to compress the working hours for Saturday. They divided my monthly salary to 24 days equivalent to 708.33 pesos per day.
But how about for the month of Dec.? I only have to work for 16 days. I have 1 absent so they computed my salary to 15days worked x 708.33 ... Imagine I only have 1 absent but I only received 10,624.95 pesos.. I've lost almost 7,000 for 1 day absent only.
Can someone who can explain this. ? Do I have the right to complain?
21st January 2015 From Philippines, Quezon City
19th June 2015 From India, Nashik
However, the matter must be viewed in historical perspective to come to a rational conclusion.
Eligibility for full wage was reduced to 48 hours of work per week by ILO Convention No. 1 of 1919 and consequent amendment to Indian Factories Act, 1911 effective from 14-07-1921. Before ILO adopted its first Convention in 1919 industrial workers toiled for several hours per day on all days and were paid wage per week. Wage is related to work; weekly holiday became one of the fundamental rights of workers. Therefore to be fair, monthly salary must be divided by the number of working days, i.e. by 26 in establishments following 6 working days per week.
India ratified on 14-07-1921 ILO Convention No1 of 1919 concerning Hours of Work (Industry) which limited working hours to 48 hours per week. Further, India ratified on 11-05-1923 ILO Convention No.14 concerning Weekly Rest (Industry), which entitled workers to enjoy a weekly holiday.
To give effect to these ILO Conventions, Indian Factories Act, 1911 which was then in force was amended vide notification dated 14-07-1921 and 11-05-1923. As per Section 22 of that amended Act no person shall be employed in any factory on a Sunday, unless: (a) he has had, or will have, a holiday for a whole day on one of the three days immediately preceding or succeeding the Sunday, and (b) the manager of the factory has previous to the Sunday or the substituted day, whichever is earlier, given notice to the inspector of his intention so to employ the said person and of the day which is to be substituted, and has at the same time affixed a notice to the same effect in the place mentioned in Section 36.
It is obvious that Factories 1948 Act substantially continued the provision as contained in Indian Factories Act, 1911.
There was no need either during 1923 or 1948 to expressly state that wages should paid for weekly holiday because full wage used to paid for the whole week including Sunday, which was a working day until ILO Convention declared it as weekly holiday and consequent amendment to Indian Factories Act, 1911 effective from 11-05-1923.
It is significant that ILO convention No.14 concerning Weekly Rest (Industry) is applicable to industrial undertakings such as mines, quarries, manufacturing construction, transport etc. Those employed in commercial offices including trading establishments, theatre etc., remained out of coverage of the Convention No. 14 of 1921. Therefore, a separate Convention was adopted by ILO in 1957 vide Convention No 106 concerning Weekly Rest in Commercial Offices to confer the right to weekly rest to these employees. Generally, the employment practice in this latter category of establishments was in the nature of monthly employment on salary. These workers normally enjoyed relatively less working hours compared to industrial workers. This employment practice probably led ILO to stipulate in convention No 106 of 1957, vide Article 9 that “there shall be no reduction of income of persons covered by this Convention as a result of the application of measures taken in accordance with the Convention”. Later day enactments as for example in Shops and Establishment Acts of various State Governments therefore specifically lays down that weekly rest must be allowed with wage.
In several advanced industrial countries labour law reforms reduced working hours to 35 hours per week; and five working days per week. In India the Government and employers consider that progressive legislation of British regime stand in the way of ease of doing business in India! If one adopts this new perspective such a rationale would tend to pay as much less for workers so as to enhance the ease of doing business. The question is would that approach be fair?
13th April 2016 From India, Ernakulam
11th June 2016 From India, Jhansi
Daily rated employment was unheard during those times. That is why the Act after revision on several times kept the text to ILO Convention.
In result there is no need for a worker to buy weekly off by offering 1/30th of monthly salary. It is a right freely available to workers .
23rd June 2016 From India, Ernakulam
We have an employee having Basic+DA as Rs. 15,500/- in his Salary. So he is Exempted from PF Act.
This Salary we are paying him for 30 Days.
So we can say that he is paid Rs. 517/day. (Rs. 15,500/30)
Now if an PF Inspector asks me that as per Minimum Wage Act, his salary should be calculated on 26 days, so according to my Payroll, he is paid Rs. 13,442/- for 26 days (Rs. 517 X 26 Days). And thus his PF should be deducted because he is falling under Rs. 15,000/- for 26 days.
What should I be doing on this?
I would conclude that any salary should be calculated on 26 basis only.
I have gone through many judgments also on this subject but nothing is clearly conclusive.
In Labour Offices, PF-ESI Department, all suggest to calculate on 26 days concept only.
It is wrong practice in most of the companies, which we being New Generation HR, should rectify.
THIS IS MY PERSONAL OPINION
Some one said in this post above giving example of Tamil Nadu S&E that his salary should not be deducted for weekly off days. What I concluded that Govt meant by saying this that he should not be considered ABSENT on such day. And if you divide by 26 and don't put his ABSENT then automatically it becomes his present and wages won't be deducted.
8th October 2016 From India, Vapi
The provision for weekly holiday was incorporated in Factories Act 1911 during 1923 following adoption of Convention by ILO entitling the industrial workers the right to Sunday as weekly holiday. The Sunday as holiday as per the Convention was without reduction in wages that used to be paid weekly for work for all days of the week. Hence the Factories Act is silent of wage for weekly holiday.
In result Sunday as holiday is a facility provided by employer at the cost to employer.
For late 20th century employer paying daily rated wage or 21st century employer paying hourly rate wage the situation remain unaltered. Employer must bear the cost of Sunday as holiday. Hence the division must be to divide monthly wage by 26 as the Labour Inspector suggests.
9th October 2016 From India, Ernakulam
(2) Where the nature of work is the same, no distinction in the payment of
wages shall be made in the case of male and female employees.
(3) (a) To arrive at the daily rates of wages, the monthly rates of wages shall
be divided by 26
(b) To arrive at the monthly rates of wages, the daily rates of wages shall
be multiplied by 30.
(4) Wherever the existing wages are higher than the minimum wages fixed
herein, the same shall be continued to be paid.
16th May 2017 From India, Madras
Thanks Senior for your valuable post...
As per my understanding, factory act says, salary should be paid on basis of worked days. ie Minimum wages monthly is 13000/-, then per days wages is 13000/26= 500 per day wages.
So for Month of Apr-19 there are 4 sundays ( 30-4=26) then salary will be calculated as 13000/26*26=13000
May-19 there are 4 sundays worked will be 31-4=27, here i am confused... what should be calculation,
1 ----- 13000/27*27=13000
2 ----- 13000/26*27=13500
point 2 qualifies the daily wages concept but company will end up in paying on higher side and in february moth the salary will be paid on lesser side to employees.
Senior please advice, as our company is providing services ( well qualified employees are deputed )to various factory across pan india. Need to stream line with on standard calculation for all within frame of labour law.
15th April 2019 From India, Pune