How Do You Calculate Contract Labor Wages with Varying Monthly Days?

Wage Calculation Based on Government Minimum Wages Circular

As per the government minimum wages circular, wages are to be calculated on the basis of 26 days.

Days in a Month:
- Jan: 31 days
- Feb: 28 days
- April: 30 days

Query:
1. Is contract labor paid on a daily wage or monthly basis?
2. In the above-mentioned months, the working days are 27, 24, and 26 respectively. Therefore, we request you to let us know how to split the wages in the cases of contract labor.

Regards,
Rahul Rathore

To calculate wages per day, use the formula: Basic + D.A / 26 days. In a month, employees work for 27 days. To determine the monthly wages, multiply 27 by the per day wage calculated based on the minimum wage.

Regards,
A. Selvaraju

Yes, I agree with Mr. Selvaraju. C.L. Minimum Wage is calculated based on 26 days, which includes the W. Offs. This information is also mentioned in the C.L. Government Order. If the minimum calculation is for 26 days, you should calculate the wages based on the actual days worked only.