Umakanthan53
Labour Law & Hr Consultant
PL Kanthan
Proprietor

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Principal Employer is registered with Labour Commissioner under the category of "Construction or Maintenance of Roads". This category is used for many types of contracts given by them. Minimum Rates of Wages are applied and paid as per this category only.
Now the query is : what is the wage (is it Basic rate only or Basic + VDA) to be paid to contract workers for Paid Holidays (availed holiday and no work) including Election Day which is also declared as Paid Holiday. PE insists for all inclusive.
I request the expertise opinion with applicable clause of relevant law/act.
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Dear Kanthan,
The definition of " wages" u/s 2(vi) of the Payment of Wages Act,1936 has been adopted by reference in the CLRA Act,1970 vide u/s 2(1)(h) of the latter.
Whatever it is, a paid holiday implies holiday with normal wages payable for a day. Here, the normal wages payable should be treated only as a single package comprising of all the regular components. If you are paying statutory minimum wages at monthly rate, then you should divide the monthly rate by 26 to arrive at the daily rate; in case it is by daily rate, the actual wages for a day should be paid as holiday wages.
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