Confused About Wage Calculation: Should Weekly Offs Be Included in Monthly Salary?

Hello Friends, I am having a big confusion while working out the salary for workers based on the Central Minimum Wages Act. Till last month, we used to pay the state government wages (Tamil Nadu) to our employees where the Basic + DA was given for the entire month. It also mentions that to get the daily Basic/DA, we need to divide the amount by 26.

New Policy on Wages

From November onwards, we got a policy to pay the higher of the Central/State wages to the workers. Here, when it comes to the central wages, the Basic and DA are given on a daily basis, i.e., for one working day. The main confusion here is that to work out the monthly salary, whether we need to consider 26 days only or do we need to include weekly offs as well?

Kindly help me.

Regards, M. Girish.

Hi, Mr. Girish,

In the field, some organizations have a 26-day work cycle, while others may have a weekly day off. This depends on the company's policy, Girish.

With Regards,

Mr. Thumbs Up

Please read the notification carefully.

If they have given only a daily rate, then you need to pay for weekly offs. In that case, you will multiply by 30/31 days of the month.

If it states that the rate is computed by dividing the monthly rate by 26 days, then you do not need to pay for weekly off separately.

Banerjee, sir. It is stated as Rates per Day in the circular. Should I opt for 30/31 days? Please suggest.

As per the Minimum Rates of the Contract Workmen notification issued by the State Government, the number of days to be counted is only 26 and not 30.

According to the Minimum Wages Act, you are required to provide one weekly day off after every six days of work. Therefore, in compliance with this regulation, you will need to calculate by multiplying by 30/31. If possible, please upload a copy of the circular so we can all review and confirm.

Understanding Minimum Wages Calculation

In the Minimum Wages Notification, the per day rate is given on the basis of 26 days.

Clarification on Company Policy and Labour Law

It is not a matter of company policy. As per Labour Law, the employer is supposed to give extra payment (OT, compensation leave, etc.) calculated at 26 days.

Chennai Minimum Wages Notification

I have a Chennai Minimum Wages Notification, which reveals that the calculation is done on the basis of 26 days. If the worker has a full month of working, the gross amount will be the same in each case. However, if there are shorter days, the calculation should be made based on 26 days. In extreme cases, there could still be some confusion, but this can be handled with personal interference. I am attaching both notifications (Delhi and Chennai) for your reference.

Regards.

Dear Mr. Girish,

It is required to calculate wages on a daily basis and salary on a monthly basis. If you are paying under the heading "Salary," then you are required to pay for their weekly off as well.

Thank you.
S. Charde.

In the attached notification, the monthly and daily rates are given. It is clear that the daily rate is excluding weekly offs. The original post talks of the central rates (not Delhi state rates) and does not have any reference to monthly rates or that it should be multiplied by 26. That is why I wanted to see the notification he was referring to. Obviously, there is an inconsistency that can be decided based on seeing the notification he is referring to.