Navigating Minimum Wage Compliance: Do Absences and Deductions Lead to Legal Issues?

Minimum Wage Compliance and Salary Deductions

If a shop follows the exact minimum wages as the salary and a worker is absent for 10 days, will the salary deduction for absence cause issues with minimum wage compliance?

Deductions for ESI and PF

If ESI and PF are being deducted after these deductions, is that incorrect, and could the shop face any trouble?

Salary Calculation for February

How should the salary for February (for 24 days) be calculated?

When the actual attendance of an employee covered by the statutory minimum wages falls short in the whole wage period, i.e., a month, they are not entitled to wages for the days of unauthorized absence, and their salary has to be calculated proportionately and paid. Certainly, such a salary for a lesser number of days worked would be less than the normal monthly salary. It cannot be treated as lesser payment.

Calculating Daily and Monthly Wages

Normally, to arrive at daily wages, the monthly wages shall be divided by 26, and to arrive at the monthly wages, the daily rate shall be multiplied by 30.

Special Consideration for February

If you want to be precisely exact regarding the month of February, which is always less than 30 days, take the total number of days minus the number of weekly holidays in the month.