Dear Seniors,
I have a query regarding the dividing of Minimum Wages, as I divide minimum wage by 26 now somebody has asked me why not by 30.
Pls. share any judgement regarding the same or in which act I will find (Minimum Wages Act/Contractor Labour Act) same.
Waiting for positive response.
Thanks in advance.
From India, Dehra Dun
10I have a query regarding the dividing of Minimum Wages, as I divide minimum wage by 26 now somebody has asked me why not by 30.
Pls. share any judgement regarding the same or in which act I will find (Minimum Wages Act/Contractor Labour Act) same.
Waiting for positive response.
Thanks in advance.
From India, Dehra Dun
Not sure of the intricacies of the act. Act says... that there is one weekly off which implies 26 working day. Hence the calculation could be considering the base as 26.
However there are state/regions and job types (skill/unskilled) that get classified differently. Those wages are defined on per day basis, hence the 26/30 number does not seem to have a strong relevance.
From India, Mumbai
However there are state/regions and job types (skill/unskilled) that get classified differently. Those wages are defined on per day basis, hence the 26/30 number does not seem to have a strong relevance.
From India, Mumbai
Dear
If you are paying salary on daily basis/per day basis then divide minimum wages by 26 else it will be will be divided 30 or 31 as the case may be.
For Example if minimum wages is Rs 5200 per month then per day salary for daily wagers will be Rs.5200/26=200. And if Employee is working on monthly basis and he worked for 29 days in May and was absent for 2 days then his salary will be calculated as 5200/31*29=4865.
Regards
Sanjeev Kwatra
From India, Delhi
If you are paying salary on daily basis/per day basis then divide minimum wages by 26 else it will be will be divided 30 or 31 as the case may be.
For Example if minimum wages is Rs 5200 per month then per day salary for daily wagers will be Rs.5200/26=200. And if Employee is working on monthly basis and he worked for 29 days in May and was absent for 2 days then his salary will be calculated as 5200/31*29=4865.
Regards
Sanjeev Kwatra
From India, Delhi
Dear Friend
In a year there are 365 days, out of which 52 are Sundays. If you reduce that 52 Sundays from 365 days, then you will get 313 days in a month. To derive No of days in a month just divide 313 days with 12 months. You will get 26.08 days in a month. If you round it off then you will get 26 days in a month. Hence you must divide the Minimum wages with 26 days and not 30/31 days.
Hope you understand the concept.
From India, Kumbakonam
In a year there are 365 days, out of which 52 are Sundays. If you reduce that 52 Sundays from 365 days, then you will get 313 days in a month. To derive No of days in a month just divide 313 days with 12 months. You will get 26.08 days in a month. If you round it off then you will get 26 days in a month. Hence you must divide the Minimum wages with 26 days and not 30/31 days.
Hope you understand the concept.
From India, Kumbakonam
Refer Pankaj's reply
No need to refer judgment. For all wages calculations including gratuity, total days in a month is considered as 26 considering compulsory weekly off as per Shops and Establishment Act/ Factories Act
Regards
Govind
From India, Mumbai
No need to refer judgment. For all wages calculations including gratuity, total days in a month is considered as 26 considering compulsory weekly off as per Shops and Establishment Act/ Factories Act
Regards
Govind
From India, Mumbai
Indrajit,
Please check the latest minimum wages notification of your state.
Some states give a per month wage, some give a per day rate.
Generally, the states also specify in the notification how the conversion from month to,day is to be done.
The main difference is to compute the deduction for absent days.
Minimum wages act, contract labour act, payment of wages act, factory act / shop and establishment act needs to be read together to get the correct regulations. You are required to give 1 weekly off, which you must pay for, even if you are paying daily wages, and definitely if you are paying monthly wages.
If you take the monthly rate and divide by 26 (as most states require), you are basically absorbing the payment for weekly off in the working days. Then you do not count the weekly off as present but instead only count the actual days worked for and multiply by daily rate.
If you decide to divide the monthly rate by 30/31, then you have to count all weekly off as present and multiply the days with that rate. The net effect remains the same.
Taking the daily rate by dividing by 30 and still counting weekly off as absent will be a violation of minimum wage rate.
If your notificatIon specifically provides 26 days basis, then you do not have a choice anyway.
From India, Mumbai
Please check the latest minimum wages notification of your state.
Some states give a per month wage, some give a per day rate.
Generally, the states also specify in the notification how the conversion from month to,day is to be done.
The main difference is to compute the deduction for absent days.
Minimum wages act, contract labour act, payment of wages act, factory act / shop and establishment act needs to be read together to get the correct regulations. You are required to give 1 weekly off, which you must pay for, even if you are paying daily wages, and definitely if you are paying monthly wages.
If you take the monthly rate and divide by 26 (as most states require), you are basically absorbing the payment for weekly off in the working days. Then you do not count the weekly off as present but instead only count the actual days worked for and multiply by daily rate.
If you decide to divide the monthly rate by 30/31, then you have to count all weekly off as present and multiply the days with that rate. The net effect remains the same.
Taking the daily rate by dividing by 30 and still counting weekly off as absent will be a violation of minimum wage rate.
If your notificatIon specifically provides 26 days basis, then you do not have a choice anyway.
From India, Mumbai
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#Subject List: minimum wages Country-India case laws shops and establishment act case law paid holidays labour act loss of pay shops and establishment wages act minimum wages act contract labour act City-India-Dehra-Dun
Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls
