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It is really an interesting concept / question for which I am looking answer from long back but I havenít got the clear and crisp answer. However I will just try to give you some justification on it...
If you refer the Indian Legislation's you will come across the discussion on daily wages concept either in Minimum Wages Act or Payment of Wages Act. Apart from this the minimum wages notifications also released across India by the labour and employment dept. into daily and monthly basic wages which clarifies below things.
1) To calculating labour wages, we consider monthly wages for 26 days (excluding Sundays) and accordingly paid to them. However in this case we follow S&E Act, while paying daily wages employee is entitled for 1 day wages for working a week in that subsequent month, which means if an employee doesn't go for holiday except sunday he is entitled for complete minimum wages notified by authority.
2) But when we calculate for employee wages the same minimum wages is to be considered for 30 days (including with Sunday) and accordingly paid to them.
So it is summarized that while paying wages for labour category 26 days should be considered and for worker category it should be considered for 30 days.
I sincerely convey that this justification may be invalid and erroneous and would invite seniors to through some light on it.
Month is any one of the twelve periods of time into which the year is divided. We all know well that a year normally comprises of 365 days but a leap year has 366 days. When we divide 365 or 366 by 12, we get fractional values only i.e., 30.41 and 30.5 only. But we know in English Calendar some months have 30 days, some others have 31 days and the month of Feb has 28 or 29 days. In Tamil Calendar some months have even 32 days. So, the number of days a month comprises of is a matter of approximation for calculation purpose.In the field of employment, wage or salary is in general the compensation given to the person employed in consideration of the work done by him. It may be based on quantity of work done or piece-rate or time taken in terms of hour, day, week,month or year or a combination of quantity and time.It depends upon the nature of work or the nature of employment relationship. When the employment relationship becomes continuous or permanent, a cosistent level of efficiency is expected from the employee and to maintain it, the wages paid by the employer has to include the day of rest. Therefore, for the sake of convenience of calculation a month is assumed to have 30 days or 4 weeks( though a week has actually 7 days ). Whether as a matter of religious impact or physical limitation, I don't know, the 7th day after a continuous work for 6 days became a day of rest by convention and by Law as well. So, by adding up the 26 days of actual work plus the 4 days of rest, a month recognized to be comprising of 30 days as an economic reality for calculation purpose in the realm of employment. Regarding the justification given by Janardhan( with an element of well-founded doubt, of course) , I would like to request him kindly to go through Rule 23 of the Minimum Wages ( Central ) Rules, 1950.
1. Sh. Umakanthan M in his remarks has referred to Rule 23 of The Minimum Wages(Central) Rules, 1950 vide which the method to calculate minimum daily rate of wages has been mentioned as by dividing the minimum monthly rate of wages by 26. I may submit that under Rule 2(1-B) of the ESI (Central) Rules, 1952 also there is provision of dividing the amount of wages by 26.
2. However, I may submit that similar subject was earlier also discussed in detail in this CiteHR vide referrence as below:
Monthly salary to be divided by 30 or 26 days??