Holiday Pay Dilemma: How Do You Add Double Wages to the Salary Structure?

Hello, I need help with holiday payment. If an employee works on a holiday and we want to pay double wages, how can we include that extra payment in the salary structure?

Dear Gitesh,

You can show it as a Festival Holiday Payment in the salary slip. If you are using any software for salary processing, then they do have this option, so please check with them. Also, if you are not using any software and using an Excel format, then you can add one more tab or type in the salary structure only for the month and pay holiday payment.

Hi Giteshsinh,

You should pay one holiday and 200% overtime. Please refer to the Festival Holidays Act applicable in your state.

Regards,
Umesh

Dear Gitesh,

You can add the amount to the salary slip against working on Festival Holiday. In case you do not have any scope of making payment in the salary slip, then allow the workmen a leave in lieu of his working on Festival Holiday. You need to act as per the rules of the National & festival holidays Act of the state.

Understanding Holiday Wages Under TN Indl Estts (N & FH) Act 1958

As per Sec 5(b) of the TN Indl Estts (N & FH) Act 1958, 'where an employee works on any holiday allowed under Sec 3, he shall, at his option, be entitled to (i) twice the wages or (ii) wages for such day and to avail himself of a substituted holiday with wages on one of the three days immediately before or after the day on which he so works'.

In other words, we need not pay holiday wages and double the wages because the question of paying double wages will arise only if the worker works for more than nine hours in any day or more than forty-eight hours in that week under Sec 59 of the Factories Act 1948.

Regards,
N. Nataraajhan
Sakthi Management Services
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]

Dear Natarajan Sir,

Work performed on National and Festival Holidays is eligible for Overtime Payment (at Double Rate). The question of working more than nine hours on any day or more than forty-eight hours in a week under Sec 59 of the Factories Act is not applicable on Paid Holidays. It applies for determining overtime on other days.

Thank you.

Dear Mr. Srinath,

I have reproduced the exact words of the TN Act which state that only twice the wages should be paid - one for the holiday and another for the worked day. Please inform me as to how and why work performed on the holiday should be treated as overtime.

Regards,
N. Nataraajhan
Sakthi Management Services
(Hp: +91 94835 17402; E-mail: natraj@sakthimanagement.com)

Dear Mr. Natarajan,

Please peruse the TN National & Festival Holidays Act and Rules under Sec 5 (2) (b) where an Employee works on any Holiday allowed under Section 3. He shall, at his option, be entitled to "Twice the Wages" or wages for such day and avail himself of a substituted Holiday with wages.