The concept of minimum wages is one of the most important aspects of labor welfare and employee rights in India. Governed under the Minimum Wages Act, 1948 (also referred to as the Wages Act 1948), it ensures that workers are not exploited and are paid fair remuneration for their services.
One of the frequently discussed provisions under this act is the 26 days minimum wages rule. Many employers and employees often raise questions about how wages are calculated – whether for 26 days, 30 days, or monthly. Let us break it down in simple terms.
What is the 26 Days Minimum Wages Rule?
As per the Minimum Wages Act, 1948, minimum wages are generally notified and calculated on the basis of 26 working days in a month, not 30 or 31. This is because 4 weekly off days are considered in the calculation.
- Example: If the notified minimum salary for a worker is ₹10,400 per month, it is derived as:
₹400 × 26 working days = ₹10,400
Thus, the daily wage rate is multiplied by 26 to arrive at the monthly figure.
Difference Between 26 Days & 30 Days Calculation
- 26 days calculation (Statutory Rule):
Minimum wages are fixed for 26 working days, excluding weekly holidays. - 30 days calculation (Employer’s Practice):
Some organizations divide the monthly wage by 30, considering all calendar days, which may reduce the effective daily rate.
The legal and correct method is 26 days calculation as per government notifications.
Delhi Minimum Wage Example
The Delhi minimum wage rates are revised periodically. For example, the minimum wage 2023 notification specified rates for unskilled, semi-skilled, and skilled workers. These rates were always based on 26 working days per month. Employers must ensure compliance with the notification to avoid penalties.
Why is This Important for Employees?
The 26 days rule directly affects take-home pay. If employers incorrectly calculate on a 30-day basis, workers may end up receiving less than the mandated living wage. The law protects employees by ensuring fair pay regardless of the number of days in a month.
Minimum Wage by State in India
Each state government notifies minimum wages by state considering cost of living, nature of work, and inflation. While the structure differs from state to state, the 26 days rule remains constant.
Some states and union territories such as Delhi, Maharashtra, Karnataka, and Tamil Nadu regularly revise their minimum wage increases to reflect current economic conditions.
Key Compliance Points for Employers
- Pay at least the notified minimum pay as per category (skilled, semi-skilled, unskilled).
- Calculate monthly wages based on 26 days, not 30.
- Provide statutory benefits like overtime, ESI, and EPF in addition to minimum wages.
- Ensure compliance with both central and state notifications.
The 26 days minimum wages rule under the Wages Act 1948 is designed to safeguard workers’ rights and ensure fair compensation. Whether you’re an employer or employee, understanding this rule helps in compliance and prevents wage disputes.
As governments continue to revise minimum wage 2023 and beyond, organizations must stay updated with minimum wage by state notifications to maintain compliance and build trust with their workforce.
At Sankhla Corporate Services Pvt Ltd, we assist businesses in ensuring proper compliance with minimum wages, labor laws, and payroll management across India.
