Eligibility for Extra Wages on National Holidays: How Do Absences Affect Pay?

Dear all,

There is a confusion that arises in my mind. Specifically:

Eligibility for Extra Wages Around National Holidays

1. If an employee doesn't perform his duty before and after a national holiday, is he eligible to receive the extra one day's wage for that day? For example, if employee "A" does not perform duty on 25.01.2015 and 27.01.2015, will he get the extra one day's wages for 26.01.2015 or not?

2. If an employee doesn't perform his duty on 26.01.2015 but has performed on 25.01.2015 and 27.01.2015, what will happen regarding the extra one day's wage?

3. If an employee doesn't perform his duty and is resting in the office restroom without punching in attendance, what will happen to that extra one day's wages?

Regards,
Anjana

It's important to kindly share your views and comments.

Understanding NFH Rules and Paid Holidays

1. NFH rules clearly state that you have to provide paid holidays for the holidays announced in Form V. If an employee works on that day, you have to provide a compensatory off or double wages.

2. Some companies do not calculate wages on a 30/31-day basis, which leads to confusion. For instance, 26.01.15 will be considered a paid holiday. When an employee works for 6 days x 8 hours, the employer is supposed to provide one day of paid holiday for rest. Similarly, festival holidays are also considered paid holidays. If you are calculating salary based on only working days (26 days), you have to consider this national holiday as a week off and process the salary accordingly. For example, if the salary is ₹10,000 per month; 31 days - 4 week offs - 2 paid holidays = 25 days. So, the per day wage will be ₹400 x 25 = ₹10,000. If the employee takes more leaves, then ₹400 will be reduced per day.

3. If an employee doesn't perform his duty and takes rest, he is not entitled to that day's wage. You have to consider that day as an absence. If he is intentionally doing so, like a pen-down strike, you have the provision to deduct 8 days' wages for that day.

Regards.

If he is not working on 26.01.2015, he is also eligible for PH. So, we will give one day's wage compulsorily. Then, before and after working his duty, if he is absent on 26.01.2015, we will give one day's wage only, not double OT hours. If he is absent both before and after, and only working on 26.01.2015, we will pay double duty as per the Factories Act 1948. Those who do not follow the company rules and regulations, as per the standing orders (e.g., not punching properly), will not be considered for wage. Only those who punch will receive wage.

Thank you.