Understanding Daily Wager Rights: Employment Duration and Wage Calculations Explained

Dear Friends,

Can you clarify two issues for me with respect to daily wagers employed by a private company:

- Is there a minimum/maximum period a daily wager can be employed before being absorbed as a permanent/temporary employee, especially if the daily wager has been employed continuously for a period of approximately 15 days each month, including day/night shifts, over a duration of 2-3 years?

- The Minimum Wage Act specifies wages of Rs 100/- per day plus V.D.A. It also specifies minimum wages payable for a period of 26 days. So, if a person works for an 8-hour shift by day and is also required to spend the night on the company premises for a requirement early the next day, should this be considered as two days or 1.5 days for the payment of wages? What is the amount applicable as V.D.A. in such a case?

Would appreciate an early response.

Thanks,
mims

Daily wage is a system of wage payment. If the work is not regular, you can appoint daily rated workers without any restriction. If a worker works for 8 hours in the day shift and the same worker is asked to continue for a further period till the morning, then the extra hours beyond eight hours will be treated as overtime, and for that, he will be entitled to double the rate of wages. Double the rate means two times the normal basic wage and VDA.

Regards,
Madhu.T.K

Thanks, Madhu.

But what about VDA? Is it payable to daily wagers as well?

Secondly, can the daily wagers be employed indefinitely for, let's say, 15-20 days a month year after year?

Thanks again,
Mims

Daily wagers are also entitled to Variable Dearness Allowance (VDA).

The very purpose of employing someone on a daily wage is due to the nature of the job, which is available only temporarily. Therefore, you can employ on a daily wage as long as the job is not regular.

Regards, Madhu.T.K