Hello, thank you all for the valuable inputs.
I've gone through other posts in the site wrt DAILY WAGE calculation. there're lot of mixed answers.
To arrive at daily rate...
Some say they consider number of working days as base to divide gross for given month(which varies according to the month, like in Feb we have 28-4 = 24 working days, in march it could be 31-5 = 26).
Some say they consider 26 as standard as base for all the months.(more in line with the act or in context of factory)
Some say they divide the gross by number of days of a month.(not in line with labor acts)
So there is lot of confusion.
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From the discussion in this thread can we summarize below points.
1. For a daily wage worker his gross should be divided by 26 to arrive at per day cost payable to him(more in line with act).
so if 2600 is his gross then per day amount to be paid should be 100/-.
Then irrespective of month whether it is a 31, 30, or 28 days, we pay him for the no of days he worked on all working days.
So even if he works for 27 days because there would be month of 31 days with 4 Sundays that results in 27 working days...then
will he get 2700 or 2600?
For Feb he would work for 28-4 = 24 days...then should he get 2600 or 2400?
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2. Let's say I don't talk about monthly figure as I mentioned 18,000. I simply hire the labor telling him I am going to pay him 500 per day.
Then I pay him for all work days irrespective of base of 26 days. Is it legal?
or I need to tell him per month 15,000 and per day 15,000/26 = 577/- instead of 500 per day?
In above case, he works all the days and is entitled to get 15,000, do I need to deduct all contributions like PF, ESI and
pay him remainder net figure?
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3.Is there anything like Monthly wage employee in context of factory? I believe we calculate per day wage and pay aggregate at end of month.
Apart from labor people, there could also be management workforce in a factory and is it legal if I decide their base month as 30 days specific to them and 26 days for labor?
Over all, whole lot of confusion lies around labor centric payroll rather than corporate payroll process. Can we have a simplified view on this?
Thanks.
Chirag Mehta.