Resolving Daily Wages Calculation for PF Coverage: A Comprehensive Analysis

Hi seniors, currently, employees drawing a salary above Rs. 15,000 are exempted. However, what about employees working on daily wages, for example, Rs. 600 per day? If they work for 26 days in a month, the total salary payable is Rs. 15,600. If they work for 24 days, the total salary payable is Rs. 14,400. How can we resolve this kind of situation? Please advise.

With Regards,
N K SHARMA

You will be calculating daily wages as the average of 26 days while calculating bonuses, gratuity, or wage settlements and for statutory purposes. However, when it comes to paying salary, you have to calculate the daily wage as 15000/24, 15000/26, or 15000/27. You can consider fixing the average daily wage as 600/-, but it is not fixed.

In order to compute monthly wages, you need to multiply daily wages by 26 (the number of working days for a normal period). However, under the Minimum Wages Act, you are also required to pay employees for the weekly off. Any person who has worked for 6 days is to be paid for the 7th day as well. So, the wages to be paid are probably 600 x 30, not 26.

Thank you.

In such a case, the average wage per day will reduce if we count wages for the off day as well.

Is the original poster talking about average wages, or is he discussing a per-day rate that is being paid to the workers?