Minimum Wage Calculation: Should It Be Divided by 25 or 26 Days in June?

In June, there are 25 working days and 5 Sundays. Can I know, as per the Minimum Wages Act, should the minimum wage be divided by 26 days or 25 days?

Thank you.

As per the Minimum Wages Act, the monthly wages should be divided by 26 to arrive at the daily wage.

Then, what is the calculation for extra days? Does it mean Sundays? Will it be for 5 Sundays or 4 Sundays?

Understanding Paid Weekly Offs and Holidays

Ideally, the weekly offs are paid, and companies are supposed to give 12-13 holidays (paid) in a year. So apart from the working days (when the office is working), you get paid for 52 Sundays (in a year) and 13 holidays in a year.

Salary Calculation Based on Calendar Days

Ideally, the salary is paid out for 28/29/30/31 days (calendar days of the month). We calculate the salary per day as (Monthly gross / calendar days for the month).

So, for example, if you have a gross salary of 30,000 per month, your per-day salary for the month of April/June is 30,000 / 30 = 1,000.

For the month of January/March, it is 30,000 / 31 = 968.

For the month of February, it is 30,000 / 28 = 1,072 or 30,000 / 29 = 1,035.

Leave and Salary Deduction

Usually, when the employee applies for leave, and the leave exceeds the allowable leave on a pro-rata basis, we deduct salary based on the gross per day depending on the number of extra leaves availed.

Hope this answers your query and resolves your doubt.

Thanks, Ankita. Here, we are calculating the salary based on the minimum wage, i.e., minimum wage / 26 * actual working days. The extra amount refers to Sundays, which are calculated using the same method, meaning minimum wage / 26 * extra days, i.e., Sundays.

The issue arises in June where there are only 25 working days, so we cannot divide it by 26 days. The question is, does this method comply with the Minimum Wages Act?

Good noon. It is nowhere stated that minimum wages should be calculated based on 26 days. Salary will be paid on Mandays, so minimum wages will be determined by the number of days worked by the employee. Leave will be calculated and adjusted according to the policy. When it comes to the monthly calculation of minimum wage, it will be paid based on Mandays.

Regards,
Gayathri

Thanks, Ankita. See what is happening here: we are calculating the salary as per the minimum wage, i.e., minimum wage / 26 * actual working days. The extra amount, which means Sundays, is calculated on the same basis, i.e., minimum wage / 26 * extra days, i.e., Sundays.

Issue with Working Days Calculation

The problem is in June, there are only 25 working days, so we could not divide it by 26 days. The question is, does this method comply with the Minimum Wages Act?

Difference Between Wages and Salary

There is a difference between people who are paid wages and people who are paid a salary. Mind you, as per the Minimum Wages Act, the per-day wage is calculated so that they get compensated for weekly offs as well. It is a different story that such people are paid at the end of the day or end of the week.

However, salaried employees are paid at the end of the month. The per-day salary is to be divided by calendar months, and we, along with many companies, practice this.

As far as my knowledge goes, I didn't come across a rule that mentions dividing the monthly salary by 26 to arrive at the per-day salary. Can you kindly share the source to educate me?