Monthly Salary To Be Divided By 30 Or 26 Days??

Hi Kavee_ta
I am HR in a construction company in Pune.We have our power plant project doing in Raipur and Cement silo project in K'taka.Kindly let me know if you or any of your collegue is interswted.
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Very useful discussion thread. I need to know when we are deducting salary on account of LWP, do we in that case take 30/31 days or 22 days( we have 2 days weekly off)?? Salary is paid monthly.
Kind regards,
Anjali Verma

Hi...

Taking the calculations by Manish as below:

"For example one employee monthly salary/wage is 6000/-per month and in any month(30days) he worked 15days and avail 2 leave with wage and 4 w/off then total pay days is 21days. Now we calculate their salary by dividing 30days

paid salary=6000-(6000/30)*(30-21)=6000-200*9=6000-1800=4200

Now dividing by 26 days

paid salary=6000-(6000/26)*(26-17)=6000-230.76*9=6000-2077=3923"

What is really the correct practice as per law?

As we refer Sumit " minimum wage of any state you will find the avarage daily wage is calculated by basic+da/26 instead of 30, 31, 28 or 29 days"; the wages rate calculation based on "basic+da". So how one can calculate salary including various allowances on months basis?

Does the terminology Minimum Wages Rate have the symbolic importance to derive a figure and place it on the board usually placed in the front of the office as per the requirement under the shop act.

Dear experts please unbundle the jugglery of min wages rate.

Dear Mr.Jain
The correct practice to arrive at the daily wages of a monthly rated employee according to law and approved by the Honourable Supreme Court in Jeewanlal's case is to divide the monthly wages by 26 and not by 30.
With regards

Dear Mr. Harikrishnan
Can we clarify ourself that the matter is to calculate the daily wages of a monthly rated employee is to divide the monthly wages by 26 and not by 30. But as far as the monthly wages calculation is concerned; it should done in the usual manner i.e. as illustrated below:
"For example one employee monthly salary/wage is 6000/-per month and in any month (30days) he worked 15days and avail 2 leave with wage and 4 w/off then total pay days is 21days. Now we calculate their salary by dividing 30days
paid salary=6000-(6000/30)*(30-21)=6000-200*9=6000-1800=4200"
Please comment on above to clarify.

Dear Mr.Anurag Jain
Before answering your query I would like to pose one issue for you to analyse and respond. I am giving you a hypothetical situation which is as follows. If an employee avails leave on loss of pay (availing leave on loss of pay is assumed) for fifteen days in a month consisting of 30 days, will you deduct wages for the weekly holidays also which(at least two) would fall within the fifteen days of leave on loss of pay. If your answer is 'YES' for this hypothetical situation then please indicate the statutory authority based on which you would deduct wages for such deduction.
With regards

Dear Mr. Harikrishnan,
Many thanks for guiding us; lastly please clarify the below scenario:
Employee A:
Days worked in July 11: 22 days (from date 1 to 22 July 11 inclusive of 2 leaves taken )
Leaves taken: 2
Leaves in credit: 2
Paid holidays pending after 22 July 11: 2 Sundays
Short Days: 31 Days – 22 Days worked = 9 Days
Monthly salary: 6000.00
Minimum Wages calculation: Rs 6000.00/26 = 231.00
Wages calculation:
Rs 6000.00 – (6000.00*9/31 days) = Rs 4258.00
or
Rs 6000.00 – (9 Days * Rs 231.00) = Rs 3921.00
or
any other
Please suggest to clear this very important issue.
Kind regards,
Anurag Jain

i totally agree with Ms. Vandana. acc. to law wages are to divided by 26 days n if monthly salaried paid will be divided by 30 days. this practice is followed in most of the compnaies
with regards
Neha Gupta
Assistant Manager HR

Dear Mr.Anurag Jain
In the example cited by you
How many days worked by the employee in July 2011
How many days leave with wages availed in July 2011
How many days leave without wages availed in July 2011
How many days of weekly off he had during July 2011
What is the law relating to working conditions applicable to the industrial establishment in which the employee was working(like Factories Act, Shops and Establishments Act etc.,)
If you are kind enough to furnish the above information I will try to answer your query
With regards

Dear Ms.Neha Gupta
Can you kindly indicate the 'law' referred to in your last post
With regards