Our company is a mining company, and we usually pay leave wages to employees. That is, whenever employees take leave, they are marked as absent, and semi-annually we pay the proportionate leave wages based on their attendance. Please provide information on the following with respect to the Act/clause.
Calculation of Daily Wages
How are daily wages calculated for payment? Employee salaries are fixed on a monthly basis. This question has arisen because, in a post on CiteHR, it was mentioned that for the computation of Gratuity, the number of days considered is 26, whereas for retrenchment, it is considered as 30.
Thank you in anticipation.
Regards,
Prince K J
From India
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1Calculation of Daily Wages
How are daily wages calculated for payment? Employee salaries are fixed on a monthly basis. This question has arisen because, in a post on CiteHR, it was mentioned that for the computation of Gratuity, the number of days considered is 26, whereas for retrenchment, it is considered as 30.
Thank you in anticipation.
Regards,
Prince K J
From India
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The practice appears to be a little self-contradictory. If you mark an employee 'ABSENT' on the day of their absence and not 'LEAVE,' then are you not deducting their wages proportionately, since such absence is not supposed to be with the permission of the management? Leave is the absence permitted. If you are paying them wages, then you are regularizing their absence, and it is only possible when leave is sanctioned.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
Mumbai
From India, Mumbai
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You should follow the provisions of the Mines Act 1952. Persons who are entitled to Earned Leave may be asked to submit an EL application for the absence period, and the same may be sanctioned. Please calculate one day's payment by dividing the monthly salary by 26, not 30.
From India, Patna
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From India, Patna
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Gratuity and Retrenchment benefits are different issues ,however Gratuity is calculated 15 days wages for every completing year of service ,taht means 1MONTH SALARY / 26 = one day salary x 15
From India, Patna
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From India, Patna
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf