Umakanthan53
Labour Law & Hr Consultant
Rkn61
Hr Manager
Bhartiya Akhil
Freelancer

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Dear All, We are a contractor supplying manpower for a factory in Tamilnadu. We are abiding by the minimum wages. One of our clients has given the following wages structure. The government has prescribed per day wages as Rs 217 and the DA as 4403. In this case, the client is taking the per day wages calculations as Rs 217 plus Rs 4403 /26 = Rs 169 hence the per day wages come to Rs 386. Moreover, the employee has to take compulsory weekly off on every seventh day where the client has told that they will not pay for the weekly off.

We calculate the wages monthly. My query in this which way to arrive the per day wages

Option 1 :- basic of Rs 217 Plus DA of Rs 4430/26 = Rs 386

Option 2 :- Basic Rs 217 * 30 ( which comes to Rs 6510) + DA of Rs 4403 = Rs 10913 hence per day = Rs 420

Which option needs to be followed for the arrival of daily wages.

Secondly, if the first option is taken and mandatory weekly off to be given whether it will be paid weekly off or non paid weekly since the wages will be paid only for working days ie for eg if the employee comes for 26 days and takes weekly off of 4 nos in a month he will be getting Rs 386 * 26 days = Rs 10036.

Request to clarify in this part about the daily wages and the weekly off ( ie whether paid weekly off or non paid)

From India, Coimbatore
If the employee is a DR (daily rated) workman/labourer, monthly calculation of wages/salary shall be the daily wages x 26 days and not the daily wages X 30 days. Hope this clarifies.
From India, Aizawl
Dear Balaji,
You have not mentioned what industry is yours.The confusion arises only because you take the basic on daily basis and the D.A on monthly basis. Certainly it cannot be so. Better please carefully go through the G.O where there would be an explanation clause as to conversion of the monthly rate to daily rate and vice versa.
When the minimum wages are set at monthly rate, you have to divide it by 26 to arrive at the daily rate and when the fixation is on daily rate, you have to multiply it by 30 to arrive at the monthly rate.

From India, Salem
Dear Umakanthan Sir,
I have a small query.
You said, monthly rate MW when it is to be converted in to daily rate, the dividing factor is 26 and when daily rate MW is to be converted in to monthly rate, the multiplying factor is 30.
Normally it should be vice a versa as what I feel.
Can you please elaborate on it?
This question is asked only to enhance the knowledge.

From India, Mumbai
Dear Akhil,
Under sec.13 (b) of the MW Act,1948, the appropriate Government has to provide for a day of rest in every period of 7 days and for the payment of wages in respect of such day of rest. In this connection, we have to refer to rule 23(4) of the Central Rules,1950 wherein under the proviso the method of conversion has been dealt with in detail.
In this back drop, the daily rate of wages includes the element of holiday wages also. Hence the method of conversion I mentioned.

From India, Salem
Dear Umakanthan Sir,
Thanks for your spontaneous response. It is a great learning opportunity by this way.
I have right now no bare Acts with me during lockdown. I will refer it as soon as possible. In case I still have doubt, I will ask you further.

From India, Mumbai
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