RENISH RAO (ADVOCATE) 13 October 2010

Minimum wage calculation on the basis of Daily Wages fixed

Dear Friends,
Here the question raised is, how do we calculate monthly wage if the prescribed wage as per the Govt. Notification is only"DAILY WAGE". There is no doubt that in order to calculate "DAILY WAGE" from notified monthly wage, the monthly wage is to be divided by twenty six.

But how do we calculate the monthly wage if the Govt. notification gives only "DAILY WAGE" and is totally silent about the monthly wage. As far as I understand, even a workman who works continuously for six days has to be paid for rest day and the payment for the rest day cannot be less than the notified "DAILY WAGE".
In other words, it would mean that a workman will have to be paid for twenty six days that he actually works in a month and for four rest days to which he is entitled as per law in case the Govt notification is silent with regard to monthly wage (i.e. a total for thirty days.)
Pls. guide me if my interpretation is wrong.

Renish Rao (Advocate)

Ahmedabad, Gujarat

(M) 9879553545

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7 Replies

V. VASUDEVAN (LEGAL COUNSEL) 14 October 2010

The monthly wage would include the weekly holidays and hence would be the daily wage X 30 or 31, based on the month.

Vasudevan

V. VASUDEVAN (LEGAL COUNSEL) 14 October 2010

Please review the circulars of various states and also the central. The very fact that the minimum wages fixed monthly is divided by 26 (NOT 30) means that the division factor provides for 4 weekly holidays. The manner of calculation has to be notified by the appropriate government (Minimum Wages Act) and where the monthly and also daily wages are notified, it can be followed. However, where the daily wage is provided, it has to be multiplied by 30/31. Please review the Weekly Wages Act as well, to get absolute clarity.

Vasudevan

RENISH RAO (ADVOCATE) 16 October 2010

Thanks a lot to both of you.

(Guest)

Coming to hard common sense, assume that a worker is a Muslim. You have to take into account his religion. If a daily wage worker works continously for a month then you have to pay for full month and cannot exclude Sundays or other Holidays. If you hire daily wage workers daily changing them ,then you may be liable to other types of proceeedings against yourself. Best course would be to study how others operate plus govt. guidelines in this regard. Unfortunately if you keep a daily wage worker for a year or so, then action can be taken against you for keeping Bonded labourers on some rival's complaint.

ratikanta (HR Manager) 04 January 2011

Delhi Govt. issues MW notification in which monthly as well as daily wages are given. There, they devide monthly wage by 26 and not by 30/31. Daily wage worker will not be paid on weekly off days and hence his daily wage shall be monthly wage devided by 26.

can any one share the notification copy.

plz mail me in this id too

ratikantarath@gmail.com