Employment Act 1955 Section 60I 1 (A)
Confusion About “26 days”?
Question in Mind
- Is it correct to use 26 days in calculating prorated salary ?
- What is 26 days ?
- How to calculate Prorated Salary for new joined or resignation ?
- Shall I use 26 days or Calendar Month ?
Ordinary Rate of Pay
- wages as defined in section 2, which an employee is entitled to receive under the terms of his contract of service for the normal hours of work for one day
- does not include any payment made under an approved incentive payment scheme or any payment for work done on a rest day or on any gazetted public holiday granted by the employer or any day substituted for the gazetted public holiday
FUNCTION OF O.R.P
O.R.P FORMULA
CONCLUSION
REGULATION DID NOT MENTIONED ABOUT USING O.R.P IN SALARY / WAGES CALCULATION
Employment Act 1955 Section 60I (2
- An employer may adopt any method or formula other than the method or formula in subsection (1A), (1B) or (1C) for calculating the ordinary rate of pay of an employee;
- The adoption of any other method or formula shall not result in a rate which is less than any of the rates provided in the subsections.
