How Do I Fairly Calculate Monthly Wages for Contractual Security Guards with All Benefits?

Dear Sir, I oversee the outsourced contractual security services in my institute. The total strength of contractual security guards is 225. Each time the contractor presents a different formula for calculating the monthly salary bill of the security guards. I suspect he is attempting to exploit the system. I am committed to ensuring that the security guards on contract receive their hard-earned money fairly.

Guidance Needed for Calculating Monthly Wages

Can anyone guide me on how to calculate the monthly wages of security guards, considering whether it should be for 26 days or 31 days? This calculation should encompass PF, ESIC, and Bonus. For instance, the minimum wage rate for watch and ward duties is 612. If a guard works for 26 days, what should be their wages, and how should we factor in the paid rest holidays?

Kindly provide a brief explanation with the calculation formula and a sample wage slip detailing the wage breakup.

Thanks and regards.

To calculate the monthly wages for contractual security guards, including PF, ESIC, and Bonus, follow these steps:

1. Determine the minimum wage rate for watch and ward duties, which is 612.
2. Calculate the daily wage by dividing the minimum wage rate by the total number of working days in a month (considering paid rest holidays).
3. Multiply the daily wage by the number of days the guard has worked to get the basic wage.
4. Calculate PF, ESIC, and Bonus contributions based on the applicable rates and regulations in Mumbai, India.
5. Deduct the PF, ESIC, and Bonus amounts from the basic wage to arrive at the net payable amount.
6. Prepare a detailed wage slip showing the wage breakup, including basic wage, PF contribution, ESIC contribution, Bonus, and the final net amount payable to each security guard.

By following these steps and ensuring compliance with labor laws and regulations, you can accurately calculate and distribute the monthly wages for the contractual security guards in your institute.