Should the per day salary be calculated by considering the actual number of days in the month?

timmu-r
Should the per day salary be calculated by considering the actual number of days in the month? Ie 30 or 31 based on the month.
Or should we calculate it by considering 26 days. We follow a 6-day week policy with Sunday as paid weekly off and provide monthly salary. And we are based in Kerala.
Can someone please advise me based on the labor law being followed in Kerala. We are an automobile dealership.
bijay_majumdar
Salary uspaid monthly. However in a month weekly off is also considered as paid off.
Yet for statutory duties weekly off is excluded unless employee works on off days.
bijay_majumdar
Salary is paid monthly. However in a month weekly off is also considered as paid off.
Yet for statutory duties weekly off is excluded unless employee works on off days.
umakanthan53
Dear Timmu,

Under the Minimum Wages Act,1948 and its Central Rules, statutory minimum rates of wages include the wages for the weekly Holiday also; that is why for the purpose of conversion, monthly rate shall be divided by 26, to arrive at the daily rate and daily rate should be multiplied by 30, to arrive at the monthly wages. Moreover, I think that even as per the Kerala Shops and Commercial Establishments Act,1960 the weekly holiday that should be allowed to the employees shall be a paid holiday only.

Therefore, to avoid any error consequent on the no of days in any month which you know has different no of days according to the calendar year followed, my suggestion would be to divide the monthly wages by the actual no of days in the particular month which may be 28,29,30 or 31 as the case be to arrive at the exact daily rate.
timmu-r
Thankyou umakanthansir ane bijay sir for your feedback
nanu1953
There are another school of thought I have noticed to my career in one of the MNC. For monthly paid employees to arrive at daily wages the formula used is ( Monthly Salary x 12 ) / 365.


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