Working Days for salaried & wage earners - method applied for calculating - CiteHR
Maheshajinjavadia
Sr. Manager Hr
Rdsyadav
Educator, Management Consultant & Trainer
Mandeepgahlawat
Hr Executive
+2 Others

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I have a manufacturing business where the number of employees are approximately 90. Around 70 employees are engaged in manufacturing process while the rest employees are engaged in other activities. We observe holidays on Sundays. So we have 26 working days per month. We pay wages to manufacturing employees and salaries to other employees.
At present we maintain a fixed wages for mfg.employees i.e. (daily minimum wages x 26days). The wages is calculated as 'Fixed Wages / 26 x Present Days.
Further salaries are calculated on the basis of Fixed Salaries / 30 or 31 x Present Days. Please ensure me the correctness of the method being applied for calculating salaries and wages.

Dear sir,
You can apply 30/31 method it's very good for u and ur company if u calculating on 26 than u have to deduct more pf and more esic from your employee salary
26 calculation is not good I have calculated it will not be beneficial for ur employee and ur company
Thanks

Mandeep,
How can the gross minimum wages be reduced? If that happens the will be less than minimum wages.
Kumar Avi,
In which state your factory is? Whether per day wages or monthly minimum wages are declared by state government?
You manufacture what? Do products you manufacture are defined as 'scheduled employment' under your state declared minimum wages?
Answers to all question will be required to guide legally correct way forward.
Shrikant Prabhudesai (Thane)
7738665045

Dear All,
1. Same condition is every where but no one can explain strongly. We argue on the same but i found that gratuity count on 26 days,
2. Many company are giving 18 days bcoz their are counting 365/20 days= 18 leave. and some are counting 365-52(week off)/20= 15 days leave.
So, both system are good. It is lack of our law.... I think no have any strong documents on this.
Regards,
Mahesh Jinjavadiya
8000007150

Mahesh J
What is the query & what is your answer.
The chapter on leave with wages in the factories act. Every detail is mentioned. Leave is calculated @ 1 day for 20 days worked. Dealing in fraction is also mentioned. Don't post some thing that you don't know about. This is forum where one should participate with knowledge.
Your statement on gratuity is vague. You need to be legally correct while making a statement. Query is neither on leave wages nor on gratuity.

Greetings to all !
And thanks for your co-operation.
I am providing the information as asked by Mr.Mandeep here. Our factory is in the state of Jharkhand. The minimum wages have been fixed on the basis of govt. notifications published time to time. We manufacture cooked food in the form of Namkins & Bhujia. The category of employment is "shops selling cooked food stuff."
Further I want to know that is it wrong to calculate wages on 26days basis and salaries on 30-31 days basis as I have discussed earlier.
Thanks

You are a factory (manufacture) & are mentioning about adherence to wage sunder 'shops selling ...'. The scheduled employment is for orgs under shops & establishment act.
You need to read names of scheduled employments of the minimum wages declared by Jharkhand govt. If there is 'cooked food stuff' without word 'shops' in it, then it is your scheduled employment.
There will be employment 'other factories' which will be your scheduled employment.

@shrikant,
My argue is simple that as per my knowledge some company following 26 days and some are following 31 days. There is no any rules mention, but when you check gratuity act that you may find that it is calculating on 26 days. So, now you can judge.
Same 26 and 31 days issue, another is leave as per factory act. leave provide 1 leave on 20 days but how many in year it is not clear.
I respect you that you have a good knowledge but ...........
Regards,

Dear Mr.Kumar AVI,

With reference to your queries in above posts, I am breaking the same and answering them here as under:

Q1) Your Organization-whether following Min. wages or not?

Ans: The place of manufacturing where food suffs / items manufactured in the place with aid and help of Power by approx.90 workers is a "factory" and if you are selling from any other location than factory, and in case this has been your Sales Office , you need to register this place under Shop and Establishment Act and obtain licence if not obtained.

Now coming to pertinent question of MW to arrive at correct Wages/ salary ?Your practice of payment of wages/Salary is correct but wanting to advise to ensure that amount of salary employees get as salary, other perks if any is not lower than MW paid to workers. As there is another ;logic that employer (You) are free to pay remuneration / facilities better and anything higher than notified wages.

In the different situations , if you have Factory and Shops both at two different locations then two different set of enactments will be applicable ie Shops and Estt. Act and Factories Act for Working Hours, Leaves etc.

Regds,

RDS Yadav

Director,

Future Instt. Of Engg and Management Technology

and

Labour Law Adviser,

Navtarang HR Services

and Labour Law Adviser


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