Monthly Salary vs. Daily Wage: Should Extra Days Be Compensated in Tamil Nadu?

If a worker is appointed on a monthly basis salary (designated as a Tailor in the Garment industry), according to Tamil Nadu minimum wage, 335 INR should be remunerated per day. However, based on his appointment order, he is appointed on a monthly salary of 8,710 INR (i.e., 335 x 26). In the case of months having 27 working days, is it legal to pay only the salary of 8,710 INR, or should the additional one day's wage (i.e., 8,710 + 335) be paid.

You are bound to pay 9045 INR if the worker is engaged for 27 days in that month.

MOHAN KUMAR

Thank you, but does the monthly salary impact the number of working days in a month? For example, in the month of February, the working days are fewer, but the full salary is still paid. Doesn't the same rule apply if the working days are more.

Dear Mr. Rajesh,

You have grossly misunderstood the difference between a monthly rated employee and a daily rated employee. You have stated that you have engaged the employee on a monthly salary basis. Consequently, for full attendance, the monthly salary as mentioned in the Minimum Wages Notification is payable.

Dear Mr. Mohan Kumar, can you please clarify how a monthly rated employee earns one day's salary extra if the month has 31 days? Similarly, will a monthly rated employee earn two days less salary in February?

Dear Rajesh,

Monthly salary, daily salary, weekly salary, hourly salary, etc., are all different from each other. As per your question, you have mentioned that the person is getting a salary on a monthly basis. So, where do days come into play again? It totally depends on the month. It will not consider how many days, hours, or weeks that particular person served. It only considers the month.

Thanks,
Dev

Dear Rajesh, I would like to request you to go through the Government Order (G.O.) issued by the Government. If the rates of minimum wages fixed for a particular category are by day or month, the method of its conversion to day or month, as the case may be, would certainly have been given in the "explanations" section of the G.O. If the minimum wages fixed are at a daily rate, to arrive at the monthly rate you have to multiply the daily rate by 30; if it is at a monthly rate, the daily rate has to be calculated by dividing the monthly rate by 26.

Therefore, based on your input, the monthly wages shall be Rs.10,050.00 [335 x 30] regardless of the actual days in a particular calendar month. In your case, the industry's monthly wages being paid are less than the minimum wages fixed.

My answer was related to daily wage notification. For monthly minimum wages, refer to Government notifications on the monthly rate of wages. I had interpreted because in his query, he has written 8710 INR as 335X26.

MOHAN KUMAR
PH: 8921883907