Salary Calculation On 26 Days!!

Can anybody tell me, whats the basis for computing salary on 26 days or working days ?
Regards,
Shweta

Dear Shweta,
Universally sundays are considered holidays. So in a month, all other days are working days. Now most months will have only 4 sundays. But the worst case scenario is when a month has 5 sundays since more than 5 is not possible. So the number of working days should be the worst case total no. of days in a month - worst case number of sundays. That will be 31-5 which is equal to 26. On pro-employee / humanitarian grounds, facts such as there are more of 30-day months than 31-day months as well as the 28/29 month of February, are ignored.
I'm guessing that in a year one gets 26 working days as leave based on the same logic.
Hope that helps.
Regards,
Mathew.

Hi all
In my opinion salary is never calculated on the basis of 26 days, it is always on basis of 30 days, However its gratuity which is calculated on basis of 26 days.
Regards

Hi Shwetha,
This is Hemalatha - HR consultant. Basically, it depends on the nature of organisation. Factories generally work on the actual working days concept or fixed days (i.e. 30 days). The logic is to confirm to ESI rules and regulations.
If you notice, leave encashment is based on 30 days and bonus is based on 30 days and hence this can be the criteria. Where there are specific union agreements to pro-rate salary based on actual working days during the month (where the employee will get a higher salary), it is suggested to have 26 or actual work days as basic.
Hema

As Hema mentioned i presume it works on the type and nature of the industry. In an organisation which is based on a factory with trade unions etc, it would be right.
Can anybody throw light on how it works in software industry

Hi ,
Among all the mails that you have received for your question Mr. Saurabh Kalra has hit the bulls eye!!!!!! with his answer : The calculation is the base for GRATUITY !!! Absolutely RIGHT !!!! 100%
Best Regards,
Sadashiv Rao :D

Hi shweta,
Main basis for calculation of salary for 26 days is used for calculation of Gratuity. I am sure that you mustbe aware of Gratuity. The organisation has to pay gratuity to the employee once he / she completes 5 years of service & is leaving the organisation. This is where the calculation of 26 days comes in to the picture (30 days - the sunday's ) Hope this information is of use to you.
Regards,
Sadashiv :)

Hello!
Apart from gratuity calculation, some companies have started calculating other benefits like leave encashment with 26 days base which benefit the employee.
Best Wishes, Learner

Hey,
I am still not clear with the funda of calculating salary on the basis of 26 days or on the basis of 30 days.
My company is into diversified business like construction, IT, Film financing etc.., and we calculate salary on the basis of 30 days.
I would like to know the correct basis of calculation of salary please help me as i m realy confused...
Regards
Preeti

Dear All,
The basic concept of 26 days came from the fact that there are not more than 4 weeks in a month, and you need to give one holiday for every week. This was done with the view to increase the wage rate of weekly and daily waged worker.
The above has been made prevalent by The Minimum Wages Act, which when bringing out the minimum wages for a period of 6 months clerly states that you need to divide the monthly wage by 26 to arrive at the daily wage.
As, for monthly paid employees this whole concept of 26 days and 30 days does not take place unless you are deducting from salary due to absenting from duty. This must also be clearly stated and informed (No. of days the Comapny would take i.e 26 or 30).
Regards,
SC