Though, the subject is amply dealt by various experts, here I would like to mention the difference how it affects the employees. Assuming, we calculate the salary on 30 days basis then employee will be benefited for his/her absence whereas will be losing for his overtime payments and in case of 26 days calculation it will be vice-versa. The another point here is employees who are drawing Minimum wages and calculated on 30/31 days basis will not be getting the overtime as per minimum wages and hence the organization will be defaulting on Payment of minimum wages.
Thanks for initiating the thread.
S R Shivrayan
Sr. Manager HR & Admin
Derewala Jewellery Industries Ltd,
Jaipur
From India, Jaipur
1Thanks for initiating the thread.
S R Shivrayan
Sr. Manager HR & Admin
Derewala Jewellery Industries Ltd,
Jaipur
From India, Jaipur
I fully agree with what Mr Harikrishnan said. If he is monthly paid employee his salary has to be devided by 30/31 for making loss of pay for the days not worked if any. If he is daily rated employee, the minimum wage as notified by the Government has to be devided by 26 only and accordingly his total wage will be calculated on the number of days worked. The logic behind it is only to cover up the weekly holiday. As per the provisions of the Shops & Estt Act or Factories Act, an employee is entitled for one day weekly holiday after working for six days. For the monthly paid employee we are allowing the weekly holiday for him where as it is not there in case of daily rated employee. To cover up the provision of weekly holiday, the monthly rate has to be devided by 26 in the case of daily rated employee whereas the monthly rate is to be devided by 30/31 in case of monthly rated employees since the monthly rated employees are enjoying the weekly holiday. In other words, the monthly paid employee will work for 26 days only and he will get the salary for full month by including four weekly holidays. This facility may not applicable to the daily rated employee, hence to cover up the weekly holiday, his salary is to be devided by 26 only instead of 30/31 as in the case of permanent employees.
with regards
sanagapalli VR
Asst Director (Retd)
E.S.I.CORPORATION
From India, Hyderabad
with regards
sanagapalli VR
Asst Director (Retd)
E.S.I.CORPORATION
From India, Hyderabad
Dear Joanna.fds
The Labour Officer cannot have an opinion contrary to law. If you feel and are sure that he is wrong or incorrect please try to give the correct position based on specific provisions of the law applicable to an establishment. The overtime rate specified by you is also not correct. If it is correct then tell the provision of the law which says that the worker should be paid 150 per hour. If while calculating the daily wage for a monthly rated employee if your calculation is more than what should be paid under law, your employer may not tolerate the mistake. Similarly if you calculate less than what should be paid under law for one day in the case of a monthly rated employee/worker the concerned individual worker or the union to which he belongs will not keep quiet.
With regards
From India, Madras
The Labour Officer cannot have an opinion contrary to law. If you feel and are sure that he is wrong or incorrect please try to give the correct position based on specific provisions of the law applicable to an establishment. The overtime rate specified by you is also not correct. If it is correct then tell the provision of the law which says that the worker should be paid 150 per hour. If while calculating the daily wage for a monthly rated employee if your calculation is more than what should be paid under law, your employer may not tolerate the mistake. Similarly if you calculate less than what should be paid under law for one day in the case of a monthly rated employee/worker the concerned individual worker or the union to which he belongs will not keep quiet.
With regards
From India, Madras
Dear All,
The logic for dividing the salary/ wages by 26 was explained to me by one Senior consultant as follows.
Total number of days in a year 365 - 52 Weekly offs = 26.08
As the remaining days are slightly more than 26 it is divided by 26, this logic also applies in a leap year.
In case an employee works on a Weekly off the employer pays double wages. In the event you are dividing the salary/ wage by 30 then you will be actually paying for the Weekly off and end up paying three times the normal salary/ wage in case he works on a Weekly off as you will have to pay double wages as per act.
To arrive at the daily wage the Minimum wages act follows the 26 days pattern and the same is reflected in Gratuity act too.
The employee in fact does not stand to loose irrespective of the month.
M.V.KANNAN
From India, Madras
The logic for dividing the salary/ wages by 26 was explained to me by one Senior consultant as follows.
Total number of days in a year 365 - 52 Weekly offs = 26.08
As the remaining days are slightly more than 26 it is divided by 26, this logic also applies in a leap year.
In case an employee works on a Weekly off the employer pays double wages. In the event you are dividing the salary/ wage by 30 then you will be actually paying for the Weekly off and end up paying three times the normal salary/ wage in case he works on a Weekly off as you will have to pay double wages as per act.
To arrive at the daily wage the Minimum wages act follows the 26 days pattern and the same is reflected in Gratuity act too.
The employee in fact does not stand to loose irrespective of the month.
M.V.KANNAN
From India, Madras
Hi
As we all know that every emploee is entitled to have one off each week. It means we are paying for off as well.
If u wud like to calculate one day actual salary it sud be divided by 26 not by 30 since employee is paid for off days as well.
I.e. Mr X per month salary is Rs 5000 that is for 30 or 31 days as the case may. This also 4 offs but his per day salary is 5000/26 since he works 26 days only
From India, Mumbai
As we all know that every emploee is entitled to have one off each week. It means we are paying for off as well.
If u wud like to calculate one day actual salary it sud be divided by 26 not by 30 since employee is paid for off days as well.
I.e. Mr X per month salary is Rs 5000 that is for 30 or 31 days as the case may. This also 4 offs but his per day salary is 5000/26 since he works 26 days only
From India, Mumbai
Hi Manish, It should be calculated by the no of days the month have, divided by the no of working day. ignore weekly they are inclusive. No other rule. regards Amit Asst. Manager HR
From India, Amritsar
From India, Amritsar
An employee with monthly salary gets same salary irrespective of number of days in the month....whether it is Febraury with 28 days or March with 31 days.....because it is monthly salary...so it is evident that the salary should be divided by the number days in the month....for deductions in March would be lower than deduction if the same is applied in month of Febraury.
From India, Delhi
From India, Delhi
If you calculate per day wages, then divided by 26. If you calculate monthly wages, then multiple by 30. It is as per rule. Regards Ramesh
From India, Tirunelveli
From India, Tirunelveli
So, in case of monthly paid employees we need to divide salary by month days (30/31 days) and in case of daily wages employees we need to divide by 26 days.
From India, Kota
From India, Kota
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