Saswatabanerjee
Partner - Risk Management
Kumaran Praveen
Hr-executive
[email protected]
Business Manager
+3 Others

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Hello Friends,
I am having a big confusion while working out the salary for workers based on Central minimum wages Act. Till last month we used to pay the state government wages(Tamilnadu) to our employees where the Basic +DA given for entire month. It also mentioned that to get the daily Basic/DA we need to divide the amount by 26.
From november onwards we got a policy to pay the higher of the Central/State wages to the Workers.
Here come to the central wages the Basic and DA given on daily basis i.e, for one working day. The main confusion here is that to work out the monthly salary whether we need to take 26 days or do we need to include weekly offs also?
Kindly help me.
Regards,
M.Girish.

From India, Chennai
Hi Mr.Girish, In field some organization take 26 days and some organization take weekly off too it depends on company policy girish. With Regards Mr.Thumbs Up
From India, Chennai
Please read the notification carefully
If they have given only daily rat,,then you need to pay for weekly offs. In that case, you will multiply by 30/31 days of the month.
If it states that the rate is computed by dividing monthly rate by 26 days, then you do not need to pay for weekly off separately

From India, Mumbai
Banerjee sir.. It is given as Rates per Day in the circular.. Shall i go for 30/31 days? Pls suggest
From India, Chennai
As per the Minimum Rates of the Contract workmen notification issued by the State Govt, the number of days to be counted is only 26 and not 30.
From India, Hyderabad
As per minimum wages act, you are required to pay for one weekly off after every 6 days of work. So, in line with that provision, you will need to multiply by 30/31. However, if you can upload the copy of the circular, we all can have a look and confirm that.

From India, Mumbai
Dear MR. Banerjee,
In the Minimum Wages Notification, the Per day rate is given on basis on 26 days.
and
Dear Mr. Praveen, it is not matter of Company Policy. As per Labour Law, the employer is supposed to give extra payment (OT, compensation Leave etc) @ 26 days calculation.
Dear Mr. Girish,
I have one Chennai Minimum Wages Notification, which reveals the calculation is done on basis of 26 days.
If the worker has full month working, the gross amt. will be same in each case, but if there is short days, calculation shoud be made on basis of 26 days. However, still in extreme cases, there could be some confusion, but same can be handled with personal interferance.
I m attaching both notification (Delhi and Chennai) for ready reference.

From India, Delhi

Attached Files
File Type: pdf minimum+wage 11 -01-10-2015-Delhi-dt.16.10.15.pdf (2.18 MB, 140 views)
File Type: pdf Minimum Wages Notification-Chennai-01-01.04.14.pdf (1.92 MB, 81 views)

Dear M. Girish,
It is required to calculate wages on a daily basis and salary on days in a month basis. If you are paying under the head " Salary " then you are required to pay for their weekly off also. Thanks.
S. Charde.

From India,
In the attached notification, the monthly and daily rates are given. It is clear that daily rate is excluding weekly offs. The original post talks of the central rates (not delhi state rates) and that it does not have any reference to monthly rates or that it should be multiplied by 26.
That is why I wanted to see the notification he was referring to.
Obviously there is an inconsistency thcan be decided based on seeing the notification he is referring to.

From India, Mumbai
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