Compensation for Working on National holiday?

Hi,
Want to know if employees are called to work in the office on national holiday I.e 2nd of Oct Gandhi Jayanti, then what should be the salary we need to pay to them for their additional working date, whether it should be 1-day salary or double salary need to pay to them for example if monthly salary is 30000 INR then for additional working on the national holiday will be 1000 or 2000?

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Total payable amount to the employee will be 2000

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Total payable will be double pay only ie 2000

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2000 will be an additional amount for this case?

i.e 30000 Regular+2K additional for worked on National holiday =32000/- or 30+1K extra=31000/-

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It’s usually double salary or a day off compensating the same.

To make it a practice - a company policy with detailed guidelines depending on the Hierarchy like - manager - Grade - you can define this and bring it to practice.

In Shops and Commercial & other similar acts it’s possible.

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Hi Inderjit,

As per me the best way to compensate employees working on any holiday should be the formula of Over Time.

Basic/26/8*2

Hope this information will help you.

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Hi

As per Bombay Shops & Establishment Act, if employee is Working on Holiday then

“PAY DOUBLE THE AMOUNT OF THE DAILY AVERAGE WAGES AND ALSO LEAVE ON ANY OTHER DAY IN LIEU OF THE COMPULSORY HOLIDAY”

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Hi Arpana,
You mean INR 2000/- will be over and above INR 30000/- (considering the example and not going into effective no. of days working).
Is there any provision in the shop & establishment act or somewhere else regarding this double salary payment for working on a national holiday?

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Hi Inderjit,

that was just a suggestion. But we need to pay double in the below mentioned manner:

For Instance: Employee worked on 02 Oct 2020 and his gross salary is 30,000/-
then calculation will be 30000/31*2= 1935/-

So, total Payable will be: 30000+1935=41935/-

Hope this will help you. About provision i will get back to you.

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Hi Aparna,

Is it necessary that we have to give the extra payment? Or can we compensate it by giving an additional paid leave.

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Hi Prince,

Its not necessary tp pay. You can always compensate.

If you decide to pay then above formula we can use and if decided to compensate then an additional paid leave can be provided.

Hope this information will help you.

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Hi Prince and Inderjit,

If an employees working on national holidays need to be paid double wages or wages for that day with a comp off.

PLease find attached provision of the same.

Hope this information will help you.
NFH2 (1).pdf (684.6 KB)

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Dear Arpana,

Thank you so much for always answering our queries patiently!

I have 2 queries.

Is the compensation rule applied to “white-collared” employees too?

Also about grant on holiday on polling day - Is it compulsory to give the holiday? We usually allow 2 hours early going or late coming on the polling day, subject to individual has exercised his voting right. Is this acceptable?

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Hi Shefali,

Thank you so much for appreciating for my work.

  1. Request you to kindly elaborate your query on Compensation rule as its not so clear.
  2. No, its not compulsory to give holiday until that state declares holiday. Else, what you are practicing is also ok.

Hope this information will help you.

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Hi Arpana,

Sincere apologies for tardy reply.

#1 - Section 5 mentioned in the screenshot - Additional compensation for employee working on the holiday - Is it applied to employees working in factories or any employee like accountant / clerk / programer / manager, etc.?

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Hi Shefali,

It is applicable for all employees.

Hope this information will be helpful to you.

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Yes, it is helpful.

Thanks!

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