Wage Days Calculation On 26 Or 30/31 Days?

Dear Sir/Madam,

I wish to know if the wages for employees are to be calculated on 26 days or 30/31 days. This is required as being a manpower provider, most of my employees are in the minimum wages bracket, and hence if daily wages are calculated on 26 days, then the gross salary is less compared to 30/31 days.

In case of 26 days calculation, is the weekly off not considered as a paid holiday?

Kindly clear my doubts...

BR Tejasz Navi Mumbai

Minimum wages as per state rules per month divided by "n".

Where n = number of days, it may be 30/31/28 as per calendar days or 26 (net working days), depending on which method achieves the per day wages rate.

In most cases for daily wages workers, payment is made daily, weekly, or fortnightly, with the final calculation made at the end of the month. In that scenario, the 26-day formula, i.e., "no work no pay," is applied.

When the employment is covered by the Minimum Wages Act, 1948, the day of the weekly off is a paid holiday. For the sake of clarity, one should refer to Sec. 30 of the MW Act, 1948, which deals with the power of the Appropriate Govt to make Rules under the Act. Sec. 30 (2)(f) specifically enjoins upon the App. Govt to provide for a day of rest in every period of seven days and for the payment of remuneration in respect of that day. That's why one can invariably find an explanatory note in every Minimum Wages Notification that to compute the daily rate, the monthly rate should be divided by 26 and to compute the monthly rate, the daily rate should be multiplied by 30. The principle of "No work, no wages" has no application in the matter of wages for a weekly off or weekly holiday for any scheduled employment under the MW Act, 1948.

Respected Umaakanthan.M Sir,

With reference to your post, I would like to ask if it is required to obtain a copy from the labor office where it is prescribed that the monthly days for calculation can be 30/31. I was unable to find any such document where it is particularly mentioned. Please guide.

Minimum wages in Maharashtra are declared for the month. As such, you can follow one of the two methods:

1) Divide minimum wages by 26 for one day's minimum wage. Pay them for the days the employee works, excluding the weekly off.

2) Divide minimum wages by 30 for one day's minimum wage. Pay them for days worked and intervening weekly offs.

In case you pay overtime at double the rate, it is advantageous to follow the second method.

Shrikant Prabhudesai
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In most cases where the MW Act is applicable, it should be 26 days only. Moreover, if the company is following the wage structure on an hourly basis or piece rates, these 26 days shall apply. In all other cases, it is 28/30/31 days only without any change in the fixed salary for an employee/s.

V. Murali