I would like to ask all one Question on 26 vs 28/30/31.
We have an employee having Basic+DA as Rs. 15,500/- in his Salary. So he is Exempted from PF Act.
This Salary we are paying him for 30 Days.
So we can say that he is paid Rs. 517/day. (Rs. 15,500/30)
Now if an PF Inspector asks me that as per Minimum Wage Act, his salary should be calculated on 26 days, so according to my Payroll, he is paid Rs. 13,442/- for 26 days (Rs. 517 X 26 Days). And thus his PF should be deducted because he is falling under Rs. 15,000/- for 26 days.
What should I be doing on this?
I would conclude that any salary should be calculated on 26 basis only.
I have gone through many judgments also on this subject but nothing is clearly conclusive.
In Labour Offices, PF-ESI Department, all suggest to calculate on 26 days concept only.
It is wrong practice in most of the companies, which we being New Generation HR, should rectify.
THIS IS MY PERSONAL OPINION
Some one said in this post above giving example of Tamil Nadu S&E that his salary should not be deducted for weekly off days. What I concluded that Govt meant by saying this that he should not be considered ABSENT on such day. And if you divide by 26 and don't put his ABSENT then automatically it becomes his present and wages won't be deducted.
From India, Vapi
We have an employee having Basic+DA as Rs. 15,500/- in his Salary. So he is Exempted from PF Act.
This Salary we are paying him for 30 Days.
So we can say that he is paid Rs. 517/day. (Rs. 15,500/30)
Now if an PF Inspector asks me that as per Minimum Wage Act, his salary should be calculated on 26 days, so according to my Payroll, he is paid Rs. 13,442/- for 26 days (Rs. 517 X 26 Days). And thus his PF should be deducted because he is falling under Rs. 15,000/- for 26 days.
What should I be doing on this?
I would conclude that any salary should be calculated on 26 basis only.
I have gone through many judgments also on this subject but nothing is clearly conclusive.
In Labour Offices, PF-ESI Department, all suggest to calculate on 26 days concept only.
It is wrong practice in most of the companies, which we being New Generation HR, should rectify.
THIS IS MY PERSONAL OPINION
Some one said in this post above giving example of Tamil Nadu S&E that his salary should not be deducted for weekly off days. What I concluded that Govt meant by saying this that he should not be considered ABSENT on such day. And if you divide by 26 and don't put his ABSENT then automatically it becomes his present and wages won't be deducted.
From India, Vapi
I agree with V. Harikrishnan that Factories Act, which "says that that first day of the week shall be a holiday for the worker, that is in other words, the worker should have a weekly off day. But the Factories Act does not say that the weekly off should be a paid weekly off. Therefore, if the employer wants to calculate the daily wages he has to divide the monthly wage by 26."
The provision for weekly holiday was incorporated in Factories Act 1911 during 1923 following adoption of Convention by ILO entitling the industrial workers the right to Sunday as weekly holiday. The Sunday as holiday as per the Convention was without reduction in wages that used to be paid weekly for work for all days of the week. Hence the Factories Act is silent of wage for weekly holiday.
In result Sunday as holiday is a facility provided by employer at the cost to employer.
For late 20th century employer paying daily rated wage or 21st century employer paying hourly rate wage the situation remain unaltered. Employer must bear the cost of Sunday as holiday. Hence the division must be to divide monthly wage by 26 as the Labour Inspector suggests.
From India, Ernakulam
3The provision for weekly holiday was incorporated in Factories Act 1911 during 1923 following adoption of Convention by ILO entitling the industrial workers the right to Sunday as weekly holiday. The Sunday as holiday as per the Convention was without reduction in wages that used to be paid weekly for work for all days of the week. Hence the Factories Act is silent of wage for weekly holiday.
In result Sunday as holiday is a facility provided by employer at the cost to employer.
For late 20th century employer paying daily rated wage or 21st century employer paying hourly rate wage the situation remain unaltered. Employer must bear the cost of Sunday as holiday. Hence the division must be to divide monthly wage by 26 as the Labour Inspector suggests.
From India, Ernakulam
when we see the minimum wage notification in tamil nadu, the following points are there in the notification
(2) Where the nature of work is the same, no distinction in the payment of
wages shall be made in the case of male and female employees.
(3) (a) To arrive at the daily rates of wages, the monthly rates of wages shall
be divided by 26
(b) To arrive at the monthly rates of wages, the daily rates of wages shall
be multiplied by 30.
(4) Wherever the existing wages are higher than the minimum wages fixed
herein, the same shall be continued to be paid.
From India, Madras
(2) Where the nature of work is the same, no distinction in the payment of
wages shall be made in the case of male and female employees.
(3) (a) To arrive at the daily rates of wages, the monthly rates of wages shall
be divided by 26
(b) To arrive at the monthly rates of wages, the daily rates of wages shall
be multiplied by 30.
(4) Wherever the existing wages are higher than the minimum wages fixed
herein, the same shall be continued to be paid.
From India, Madras
Is there any law or any notification or any circular from Labour dept Jharkhand govt that weekly off day i.e. seventh day (Sunday) will be paid weekly off day , if then why wages devided by 26 days instead of 30 days
From India, Jamshedpur
From India, Jamshedpur
Sir Let me know if apermanent employee working for 7.41 hr instead 8 hr he will pay for 8hr or 7.41 hr half day (4hr) which will be applicable in this situation as per law
From India, Bhubaneswar
From India, Bhubaneswar
Hi Everyone,
Thanks Senior for your valuable post...
As per my understanding, factory act says, salary should be paid on basis of worked days. ie Minimum wages monthly is 13000/-, then per days wages is 13000/26= 500 per day wages.
So for Month of Apr-19 there are 4 sundays ( 30-4=26) then salary will be calculated as 13000/26*26=13000
May-19 there are 4 sundays worked will be 31-4=27, here i am confused... what should be calculation,
1 ----- 13000/27*27=13000
2 ----- 13000/26*27=13500
point 2 qualifies the daily wages concept but company will end up in paying on higher side and in february moth the salary will be paid on lesser side to employees.
Senior please advice, as our company is providing services ( well qualified employees are deputed )to various factory across pan india. Need to stream line with on standard calculation for all within frame of labour law.
From India, Pune
Thanks Senior for your valuable post...
As per my understanding, factory act says, salary should be paid on basis of worked days. ie Minimum wages monthly is 13000/-, then per days wages is 13000/26= 500 per day wages.
So for Month of Apr-19 there are 4 sundays ( 30-4=26) then salary will be calculated as 13000/26*26=13000
May-19 there are 4 sundays worked will be 31-4=27, here i am confused... what should be calculation,
1 ----- 13000/27*27=13000
2 ----- 13000/26*27=13500
point 2 qualifies the daily wages concept but company will end up in paying on higher side and in february moth the salary will be paid on lesser side to employees.
Senior please advice, as our company is providing services ( well qualified employees are deputed )to various factory across pan india. Need to stream line with on standard calculation for all within frame of labour law.
From India, Pune
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