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T.Thirumurugan
32

One person's daily wages is Rs.400.

His February 2023 Wage Month's Salary is Rs.400x28=Rs.11,200

His March 2023 Wage Month Salary is Rs.400x31=Rs.12,400

His April 2023 Wage Month Salary is Rs.400x30=Rs.12,000

In this Case, Daily Wages Rs.400 is constant for all day in a month. But, Monthly Wages is not constant. Because, Monthly wages is getting up & down month by month.

We do not fix his wages on monthly Salary.

Whether it is acceptable by PF & ESI Act.

Whether Monthly wages is mandatorily to keep Constant.
(or)
Whether Daily wages is mandatorily to keep Constant.

KK!HR
1531

The primary calculation is the monthly wages and daily wages are derived by dividing the monthly wages by 26. So, in calculating wages for the month, the full payment for the month remains constant irrespective of the number of working days in the month. To give a practical view in this regard keep the monthly full wages constant throughout the period, for absence or deduction for any number of days use the daily wages derived from such monthly wages.
From India, Mumbai
T.Thirumurugan
32

Dear Sir,

When We are going to generate UAN Card, We have to fill up the Monthly EPF Wages as on Joining Mandatorily and correctly.

Once Monthly EPF Wages as on Joining is entered wrongly, Employer (and/or PF Office) can not able to correct the Monthly EPF Wages as on Joining.

If One person's daily wages is Rs.400 per day, What will be the Monthly EPF Wages as on Joining.

Which one of the following, Employer have to fill up in place of Monthly EPF Wages as on Joining:

Option (a): Rs.11,200 p.m.(28 Days Wages)

Option (b): Rs.12,400 p.m.(31 Days Wages)

Option (c): Rs.12,000 p.m.(30 Days Wages)

Option (d): Rs.10,400 p.m.(26 Days Wages)

KK!HR
1531

Are you covered under the schedule of the Minimum Wages Act 1948, if so, you are required to follow the notified minimum wages and it has to be fixed as per the monthly wages. Even otherwise, an employee present on all days in the month is entitled to get the full wages irrespective of the number of working days in the month as per the Payment of Wages Act 1936. Trying to derive monthly wages as a multiple of daily wages is erroneous legally, and you can be prosecuted for wilful violation of law.
From India, Mumbai
4210

I think the query is legality of changing the wages based on the number of days worked or number of pay days in each month. There is no illegality in it. Daily rate of wages is not a crime and is followed in many industries. It is natural depending upon the pay days salary may change and the EPF or ESI authorities will not question it. There is no dispute over the treatment of weekly off also because you are paying for the entire month which includes weekly off days. Therefore, there is non compliance in your system so long as your daily rate of wages, ie Rs 400 per day, is not less than the minimum wages notified by the government.
From India, Kannur
nanu1953
334

Salary / Wages may be daily basis or monthly basis. In case of daily basis, the number of days is worked by the employee x daily rate is the monthly wages. PF, ESI etc. will be on the basis of Total monthly earning.

In case of monthly rate and to arrive daily rate there is no specific guideline under labor laws. In case of gratuity and minimum wages to arrive daily rate - monthly rate should be divided by 26. But for other purpose different organizations follow different method - daily wages by dividing 30 or the number of days in a particular month.

No harm to follow any of the above method except for gratuity and minimum wages.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

www.usdhrs,in

From India, New Delhi
suresh2511
246

Dear T.Thirumurugan,

Where is the ambiguity? If the daily wage rate is fixed at Rs.400/-, the worker will be paid for the number of days worked rather than the number of days in the month. Because weekly offs are not compensated for daily rated employees. The average number of working days in a month is 25, 26, and sometimes 27.
You must confirm that your industry fits within a scheduled employment category and that the sum of Rs.400 is not less than the MW applicable to your organization.

Regards,

Suresh

From India, Thane
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