Dear HR Experts,
I have a query, kindly comment/suggest.
Case 1: For how many days is a daily wage earner entitled to be paid if he works for 25 days in a month?
Case 2: For how many days is a daily wage earner/monthly wage earner entitled to be paid if he works for 27 days in a month? Will he be paid for 25 days or 27 days respectively, or is there a standard of being paid for 26 days?
Kindly quote the act or provide references if possible.
Regards,
From India, Indore
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184I have a query, kindly comment/suggest.
Case 1: For how many days is a daily wage earner entitled to be paid if he works for 25 days in a month?
Case 2: For how many days is a daily wage earner/monthly wage earner entitled to be paid if he works for 27 days in a month? Will he be paid for 25 days or 27 days respectively, or is there a standard of being paid for 26 days?
Kindly quote the act or provide references if possible.
Regards,
From India, Indore
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Dear,
Every company has one weekly off. We have to pay them for each working day, which may be 26 or 27 days depending on the working days available in that particular month. However, they are also entitled to receive holiday payment as declared by the company.
Regards,
Soham.
From India
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Every company has one weekly off. We have to pay them for each working day, which may be 26 or 27 days depending on the working days available in that particular month. However, they are also entitled to receive holiday payment as declared by the company.
Regards,
Soham.
From India
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@ Akhilesh
You are right, it should be calculated as per 26 days. He will get 25/26*Gross salary if he works 25 days. He will get paid for 26 days if he works for 27 days. Depending on the month, he will get more or less if he works for 27 days. Consider the case of February; you will get a clear idea.
Abhash Anand
Management Solutions
SA 8000 Consultant
09819728288 / 09029767310
From India
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You are right, it should be calculated as per 26 days. He will get 25/26*Gross salary if he works 25 days. He will get paid for 26 days if he works for 27 days. Depending on the month, he will get more or less if he works for 27 days. Consider the case of February; you will get a clear idea.
Abhash Anand
Management Solutions
SA 8000 Consultant
09819728288 / 09029767310
From India
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Dear Akhilesh,
In the case of daily-rated workmen, they will not be paid wages for weekly offs in the month; however, they will be paid wages for holidays as declared by the company. For monthly-rated workmen, they will be paid for all days in a month, whether it be 28, 29, 30, or 31 days.
Please keep in mind that when calculating daily wages, the monthly salary is divided by 26 days. Hence, the difference...
Jagadish Kamath.
From India, Shahapur
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In the case of daily-rated workmen, they will not be paid wages for weekly offs in the month; however, they will be paid wages for holidays as declared by the company. For monthly-rated workmen, they will be paid for all days in a month, whether it be 28, 29, 30, or 31 days.
Please keep in mind that when calculating daily wages, the monthly salary is divided by 26 days. Hence, the difference...
Jagadish Kamath.
From India, Shahapur
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Dear Akhilesh,
Please find below mentioned ways for paying wages:
a) Daily wage earners will get the wages for the number of days they worked. The payment of wages should not be less than the minimum wages for daily earners. In case you cannot find the minimum wages for daily earners or if the state does not specify daily wages, then you can divide the monthly wages by 26 days. This is because for daily wage earners, the principle is "No work, no pay." If you observe that the wage earner is working continuously in your industry (for example, more than 30 days or if there are intervals due to continuous working during festivals), then he/she should receive wages for holidays as well.
b) The standard working days for monthly wages are usually 26 (excluding weekly offs). You can divide the monthly wages by the standard 26 or by the number of days in a month. For instance, if the monthly wage of Mr. Ramesh is 3000/month and he worked for 15 days in March 2009 (considering only working days), you can calculate his wages using the standard 26 method. He will receive Rs. 1730.76 for 15 days of work. If you calculate based on 31 days, he will get Rs. 1451.61 for 15 working days plus 290.32 for the three weekly offs, totaling Rs. 1741.93.
c) In February, you can divide the monthly wages by either the standard 26, 28, or 29 days, depending on the company policy.
In all the above cases, the calculation should not result in wages lower than the minimum wages for daily earners or lower than the equivalent daily wages for monthly earners.
All the above calculations are in accordance with labor laws.
From India, Delhi
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Please find below mentioned ways for paying wages:
a) Daily wage earners will get the wages for the number of days they worked. The payment of wages should not be less than the minimum wages for daily earners. In case you cannot find the minimum wages for daily earners or if the state does not specify daily wages, then you can divide the monthly wages by 26 days. This is because for daily wage earners, the principle is "No work, no pay." If you observe that the wage earner is working continuously in your industry (for example, more than 30 days or if there are intervals due to continuous working during festivals), then he/she should receive wages for holidays as well.
b) The standard working days for monthly wages are usually 26 (excluding weekly offs). You can divide the monthly wages by the standard 26 or by the number of days in a month. For instance, if the monthly wage of Mr. Ramesh is 3000/month and he worked for 15 days in March 2009 (considering only working days), you can calculate his wages using the standard 26 method. He will receive Rs. 1730.76 for 15 days of work. If you calculate based on 31 days, he will get Rs. 1451.61 for 15 working days plus 290.32 for the three weekly offs, totaling Rs. 1741.93.
c) In February, you can divide the monthly wages by either the standard 26, 28, or 29 days, depending on the company policy.
In all the above cases, the calculation should not result in wages lower than the minimum wages for daily earners or lower than the equivalent daily wages for monthly earners.
All the above calculations are in accordance with labor laws.
From India, Delhi
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Dear Akhilesh,
You would have clarified everything through seniors' answers. It is fair according to rules and regulations. However, by this process, employees don't get the fair benefit of monthly offs.
To ensure fair benefits for employees in my company, I spoke to my boss and convinced him to calculate the salary of such employees based on 30 days. I supervised the calculations and found that it incurred less expense than calculating based on 26 days. This process will ensure that employees receive fair benefits.
As HR professionals, it is our duty to ensure that employees receive fair benefits.
Thank you.
From India, Haldwani
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You would have clarified everything through seniors' answers. It is fair according to rules and regulations. However, by this process, employees don't get the fair benefit of monthly offs.
To ensure fair benefits for employees in my company, I spoke to my boss and convinced him to calculate the salary of such employees based on 30 days. I supervised the calculations and found that it incurred less expense than calculating based on 26 days. This process will ensure that employees receive fair benefits.
As HR professionals, it is our duty to ensure that employees receive fair benefits.
Thank you.
From India, Haldwani
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Hi,
If an employee had worked for 27 days in November, you divide his salary of Rs. 3000 by 26 days to arrive at the single-day salary and multiply it by 27 days for his November salary. By doing so, he will get Rs. 3115.00 for the month of November.
By the above principle, in some months, the employer would pay wages for 27 days, and for some months, for 26 days. For the month of February, he would pay for 24 days, and in a leap year, for 25 days.
Mohan Rao Manager HR
From India, Visakhapatnam
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If an employee had worked for 27 days in November, you divide his salary of Rs. 3000 by 26 days to arrive at the single-day salary and multiply it by 27 days for his November salary. By doing so, he will get Rs. 3115.00 for the month of November.
By the above principle, in some months, the employer would pay wages for 27 days, and for some months, for 26 days. For the month of February, he would pay for 24 days, and in a leap year, for 25 days.
Mohan Rao Manager HR
From India, Visakhapatnam
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PAYMENT OF WAGES ACT 2009.doc