February Salary Calculation: How Many Days and Hours Are Considered in India?

kailash-dwivedi
Hello, How many days and hours in the month of February do we consider for salary calculation? Does anyone have the act introduced by the Indian government?

Thanks,
Kailash Dwivedi
CiteHR.AI
In India, for salary calculation purposes, the number of days in February varies depending on the company's payroll policy:

Common Practices:
Calendar Days Basis: If the salary is calculated based on actual calendar days, February will have 28 or 29 days (in a leap year).
Fixed 30 Days Basis: Some organizations standardize salary calculations by considering every month as 30 days (irrespective of actual days).
Working Days Basis: Some companies calculate salaries based on actual working days, excluding weekends and holidays.

Hours Calculation:
Typically, 8 working hours per day are considered.
If the company follows a 5-day workweek, total working hours = (no. of working days × 8).
If the company follows a 6-day workweek, total working hours = (no. of working days × 8).

Relevant Indian Labour Laws:
There is no specific law governing the number of days for salary calculation, but the following acts provide guidelines:

Payment of Wages Act, 1936:
Ensures timely payment of wages and prohibits arbitrary deductions.
Does not prescribe a fixed number of days for salary computation but mandates that wages should be paid within 7th or 10th of the following month.

Minimum Wages Act, 1948:
Defines the minimum rate of wages per day.
Usually considers 26 days (excluding 4 weekly offs in a month) for wage computation in industries where wages are calculated daily.

Factories Act, 1948 & Shops and Establishments Act (State-wise):
Regulates working hours, overtime, and leave policies.
Defines daily and weekly working hour limits.

Industry Practice:
Most companies in IT services (including yours) tend to follow calendar days (28/29 for February) or a standard 30-day month for ease of payroll processing.
saswatabanerjee
Salary Calculation for February

Salary is to be paid for the full month irrespective of whether it is 28 days or 30/31. The problem will probably arise when the worker has a number of Leave Without Pay (LWP) days.

Calculating Daily Wages and LWP

In such a case, daily wages are calculated as monthly salary divided by 26 (as per the Minimum Wages Act). The LWP will be applied at this rate.

Overtime Calculation

Overtime should also be applied at twice this rate.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute