Unions demand to divide the monthly salary by 26 to find out per day salary. We divide by 30 or 31 days. Which is correct?

No, you got it wrong.
On dividing by 26, you are enhancing the rate to absorb the weekly holiday in the working days.
Say monthly salary is 3000.
Which would be 100 per day on a 30 day basis.
Instead you divide by 26, you get a rate of 115 per day
So, this way, you are absorbing the weekly off days in the daily rate.
115 x 26 and 100 x 30 is the same

Sir,
Suppose in a month there are 4 Sundays and sunday is a weekly off of worker and there are 30 days in a month,
as per your above logic you are paying Rs. 115 per day rate and not Rs. 100.
I am totally agree that, you are paying higher per day rate.
Now as per Act we need to pay for weekly off then we should pay for 26 working days+4 weekly offs. (1 paid weekly off should be given after 6 days working)
now 26 working days= 26*115=2990 and for weekly offs=4*115 =460
if you are paying for 26 days only (i.e. for working days only) then the payment is= Rs. 2990.00 that means Rs. 460 for weekly off are not paid..
the actual payment should be Rs. 3450.(for 26 AWD+4 WOFF)

Hi,
as per Factories Act or Minimum wages act we have to give one paid weekly off and for every six working days. and salary should divided into no. days in a month * no of working days in a month (including weekly offs).
Srini

The minimum wages notification specifies wages on monthly and daily basis. In computing daily wages the notifications take 26 working days. So the wages is per day worked, not per calander day. So you do not need to pay weekly off separately
To cross verify, check if any person who was not absent in any working day of the week is getting full wages and you will be able to verify.

Dear Sir,
Thanks for providing detailed information. you have provided very useful information. this information is correct as per law.
but still if we pay on 30/31 day basis then also we are not violating the law.

So long as you are paying higher than required, there won't be a problem.
Meanwhile, you try to explain to your union how your method gives more money to the workers

As per the Factory Act or Minimum Wages Act, you can't reduce any bodies daily average wages.

So every month Salary (30 or 31 or 28 days of the month) divided in to 30 days by default and multiply with number of salary payable days, but not more than 30 days (if full month present 31 or 28 days month). On 31 days month it should be Gross Salary 30000 / 30 x 30 (if greater than 30 it is 30) but attendance shown 31 or 28 days as per the month.

Either when an employee absent on January or February or any other month of 31 days his/er Average daily Salary/wages will be reduce or increase or change if you divided by 31 or 28 days.

You don't have right to reduce or change the daily wages / salary of any employee.

Your wrong practice, effect on ESIC daily wages as well as PF daily average wages if any employee absent on any day of the month. Few month you increased his/er daily wages, again very next month you reduce his/er daily wages.

Your wrong practice followed by the department also.