Understanding Earned Leave Wages Calculation in Mining Companies under the Mines Act - Insights and

Our company is a mining company, and we usually pay leave wages to employees. That is, whenever employees take leave, they are marked as absent, and semi-annually we pay the proportionate leave wages based on their attendance. Please provide information on the following with respect to the Act/clause.

How are daily wages calculated for payment? Employee salaries are fixed on a monthly basis. This question has arisen because in a post on CiteHR, it was mentioned that for the computation of Gratuity, the number of days considered is 26, whereas for retrenchment, it is considered as 30.

Thank you in anticipation.

Regards,
Prince K J

The practice appears to be a little self-contradictory. If you mark an employee 'ABSENT' on the day of their absence and not 'LEAVE', then are you not deducting their wages proportionately, since such absence is not supposed to be with the permission of the management? Leave is the absence permitted. If you are paying them wages, then you are regularizing their absence, and it is only possible when leave is sanctioned.

B. Saikumar

Mumbai

You are confused, Mr. Prince. If you marked absent, then there is no need to consider leaves later on. If you want to compensate, then give leave and don't mark absent. Be clear, be sure.

Chill, HR

Mr. Prince, you should have to follow the provisions of the Mines Act 1952. Persons who are entitled to Earned Leave may be asked to submit an EL application for the absence period, and the same may be sanctioned. Please calculate one day's payment by dividing the monthly salary by 26, not 30.

Gratuity and retrenchment benefits are different issues; however, gratuity is calculated as 15 days' wages for every completed year of service. This means:

1 month's salary / 26 = one day's salary x 15

Thank you.

Seniors,

What are the minimum days of earned leave or medical leave eligible for an employee in coal mines? Kindly let me know under which clause.

Thank you in anticipation.

Prince K J