Dear All,
We are a contractor supplying manpower for a factory in Tamil Nadu. We are abiding by the minimum wages. One of our clients has given the following wage structure. The government has prescribed per day wages as Rs. 217 and the DA as 4403. In this case, the client is calculating the per day wages as Rs. 217 plus Rs. 4403 / 26 = Rs. 169; hence, the per day wages amount to Rs. 386. Moreover, the employee has to take a compulsory weekly off every seventh day where the client has stated that they will not pay for the weekly off.
We calculate the wages monthly. My query is, in which way should we arrive at the per day wages?
Option 1: Basic of Rs. 217 Plus DA of Rs. 4430 / 26 = Rs. 386
Option 2: Basic Rs. 217 * 30 (which comes to Rs. 6510) + DA of Rs. 4403 = Rs. 10913; hence, per day = Rs. 420
Which option needs to be followed for the arrival of daily wages?
Secondly, if the first option is taken and a mandatory weekly off is to be given, should it be a paid weekly off or non-paid weekly off since the wages will only be paid for working days, i.e., for example, if the employee works for 26 days and takes four weekly offs in a month, they will receive Rs. 386 * 26 days = Rs. 10036.
I request clarification on the daily wages and the weekly off (i.e., whether it is a paid weekly off or non-paid).
Thank you.
From India, Coimbatore
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We are a contractor supplying manpower for a factory in Tamil Nadu. We are abiding by the minimum wages. One of our clients has given the following wage structure. The government has prescribed per day wages as Rs. 217 and the DA as 4403. In this case, the client is calculating the per day wages as Rs. 217 plus Rs. 4403 / 26 = Rs. 169; hence, the per day wages amount to Rs. 386. Moreover, the employee has to take a compulsory weekly off every seventh day where the client has stated that they will not pay for the weekly off.
We calculate the wages monthly. My query is, in which way should we arrive at the per day wages?
Option 1: Basic of Rs. 217 Plus DA of Rs. 4430 / 26 = Rs. 386
Option 2: Basic Rs. 217 * 30 (which comes to Rs. 6510) + DA of Rs. 4403 = Rs. 10913; hence, per day = Rs. 420
Which option needs to be followed for the arrival of daily wages?
Secondly, if the first option is taken and a mandatory weekly off is to be given, should it be a paid weekly off or non-paid weekly off since the wages will only be paid for working days, i.e., for example, if the employee works for 26 days and takes four weekly offs in a month, they will receive Rs. 386 * 26 days = Rs. 10036.
I request clarification on the daily wages and the weekly off (i.e., whether it is a paid weekly off or non-paid).
Thank you.
From India, Coimbatore
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If the employee is a DR (daily rated) workman/labourer, monthly calculation of wages/salary shall be the daily wages x 26 days and not the daily wages X 30 days. Hope this clarifies.
From India, Aizawl
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651From India, Aizawl
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Dear Balaji,
You have not mentioned what industry you are in. The confusion arises because you are paid the basic on a daily basis and the D.A on a monthly basis. This setup seems incorrect. I suggest carefully reviewing the G.O where there should be an explanation regarding the conversion of the monthly rate to the daily rate and vice versa.
When the minimum wages are set at a monthly rate, you have to divide it by 26 to arrive at the daily rate. Conversely, when the fixation is on a daily rate, you have to multiply it by 30 to arrive at the monthly rate.
Please ensure you understand this calculation method for accurate wage computation.
Thank you.
From India, Salem
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You have not mentioned what industry you are in. The confusion arises because you are paid the basic on a daily basis and the D.A on a monthly basis. This setup seems incorrect. I suggest carefully reviewing the G.O where there should be an explanation regarding the conversion of the monthly rate to the daily rate and vice versa.
When the minimum wages are set at a monthly rate, you have to divide it by 26 to arrive at the daily rate. Conversely, when the fixation is on a daily rate, you have to multiply it by 30 to arrive at the monthly rate.
Please ensure you understand this calculation method for accurate wage computation.
Thank you.
From India, Salem
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Dear Umakanthan Sir,
I have a small query. You mentioned the monthly rate MW, and when it needs to be converted into a daily rate, the dividing factor is 26. Conversely, when converting the daily rate MW into a monthly rate, the multiplying factor is 30.
I believe it should be the other way around. Could you please provide further clarification on this matter? This question is solely intended to enhance my understanding.
Thank you.
From India, Mumbai
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I have a small query. You mentioned the monthly rate MW, and when it needs to be converted into a daily rate, the dividing factor is 26. Conversely, when converting the daily rate MW into a monthly rate, the multiplying factor is 30.
I believe it should be the other way around. Could you please provide further clarification on this matter? This question is solely intended to enhance my understanding.
Thank you.
From India, Mumbai
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Dear Akhil,
Under sec. 13 (b) of the MW Act, 1948, the appropriate Government has to provide for a day of rest in every period of 7 days and for the payment of wages in respect of such day of rest. In this connection, we have to refer to rule 23(4) of the Central Rules, 1950, wherein under the proviso, the method of conversion has been dealt with in detail.
In this backdrop, the daily rate of wages includes the element of holiday wages also. Hence, the method of conversion is mentioned.
From India, Salem
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Under sec. 13 (b) of the MW Act, 1948, the appropriate Government has to provide for a day of rest in every period of 7 days and for the payment of wages in respect of such day of rest. In this connection, we have to refer to rule 23(4) of the Central Rules, 1950, wherein under the proviso, the method of conversion has been dealt with in detail.
In this backdrop, the daily rate of wages includes the element of holiday wages also. Hence, the method of conversion is mentioned.
From India, Salem
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Dear Umakanthan Sir,
Thank you for your prompt response. It is a great learning opportunity in this way. I currently do not have any bare Acts with me during the lockdown. I will refer to them as soon as possible. If I still have doubts, I will ask you for further clarification.
Thank you.
From India, Mumbai
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Thank you for your prompt response. It is a great learning opportunity in this way. I currently do not have any bare Acts with me during the lockdown. I will refer to them as soon as possible. If I still have doubts, I will ask you for further clarification.
Thank you.
From India, Mumbai
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