I broadly agree with V Harikrishnan. However, the matter must be viewed in a historical perspective to come to a rational conclusion.
Historical Context of Wage Calculation
Eligibility for full wage was reduced to 48 hours of work per week by ILO Convention No. 1 of 1919 and the consequent amendment to the Indian Factories Act, 1911, effective from 14-07-1921. Before the ILO adopted its first Convention in 1919, industrial workers toiled for several hours per day on all days and were paid wages per week. Wage is related to work; the weekly holiday became one of the fundamental rights of workers. Therefore, to be fair, the monthly salary must be divided by the number of working days, i.e., by 26 in establishments following 6 working days per week.
ILO Conventions and Indian Legislation
India ratified ILO Convention No. 1 of 1919 concerning Hours of Work (Industry) on 14-07-1921, which limited working hours to 48 hours per week. Further, India ratified ILO Convention No. 14 concerning Weekly Rest (Industry) on 11-05-1923, which entitled workers to enjoy a weekly holiday.
To give effect to these ILO Conventions, the Indian Factories Act, 1911, which was then in force, was amended via notifications dated 14-07-1921 and 11-05-1923. As per Section 22 of that amended Act, no person shall be employed in any factory on a Sunday unless: (a) he has had, or will have, a holiday for a whole day on one of the three days immediately preceding or succeeding the Sunday, and (b) the manager of the factory has, prior to the Sunday or the substituted day, whichever is earlier, given notice to the inspector of his intention to employ the said person and of the day which is to be substituted, and has at the same time affixed a notice to the same effect in the place mentioned in Section 36.
It is obvious that the Factories Act of 1948 substantially continued the provision as contained in the Indian Factories Act, 1911.
Wage Payment for Weekly Holidays
There was no need either during 1923 or 1948 to expressly state that wages should be paid for the weekly holiday because full wage used to be paid for the whole week, including Sunday, which was a working day until the ILO Convention declared it a weekly holiday and the consequent amendment to the Indian Factories Act, 1911, effective from 11-05-1923.
Applicability of ILO Convention No. 14
It is significant that ILO Convention No. 14 concerning Weekly Rest (Industry) is applicable to industrial undertakings such as mines, quarries, manufacturing, construction, transport, etc. Those employed in commercial offices, including trading establishments, theatres, etc., remained out of the coverage of Convention No. 14 of 1921. Therefore, a separate Convention was adopted by the ILO in 1957 via Convention No. 106 concerning Weekly Rest in Commercial Offices to confer the right to weekly rest to these employees. Generally, the employment practice in this latter category of establishments was in the nature of monthly employment on salary. These workers normally enjoyed relatively fewer working hours compared to industrial workers. This employment practice probably led the ILO to stipulate in Convention No. 106 of 1957, via Article 9, that "there shall be no reduction of income of persons covered by this Convention as a result of the application of measures taken in accordance with the Convention." Later enactments, such as the Shops and Establishment Acts of various State Governments, therefore specifically lay down that weekly rest must be allowed with wage.
Current Challenges and Perspectives
In several advanced industrial countries, labor law reforms reduced working hours to 35 hours per week and five working days per week. In India, the Government and employers consider that progressive legislation of the British regime stands in the way of ease of doing business in India! If one adopts this new perspective, such a rationale would tend to pay much less for workers to enhance the ease of doing business. The question is, would that approach be fair?
Regards