Page 104 - DCOM207_LABOUR_LAWS
P. 104
Unit 6: Payment of Wages Act, 1936
Basic rate of pay is used to calculate pay for work on a rest day or public holiday. Notes
For a monthly-rated employee, the basic rate of pay for one day is calculated as follows:
12 × monthly basic rate of pay
52 × average number of days an employee is required to work in a week
For a piece-rated employee, the basic rate of pay for one day is calculated as follows:
Total pay earned (without allowance) during the 14 calendar days
immediately before a rest day/public holiday/outpatient sick leave
Number of days worked during the same period of 14 calendar days
The basic rate of pay includes wage adjustments and increments that an employee is entitled to
under his/her contract of service, but it excludes the following:
(a) Additional payments by way of:
z overtime payments;
z bonus payments; or
z annual Wage Supplements;
(b) Any sum paid to the employee for reimbursement of special expenses incurred by him/her
in the course of employment;
(c) Productivity incentive payments; and
(d) Any allowance however described.
Gross Rate of Pay
The gross rate of pay is used to calculate:
(a) salary in lieu of notice of termination of service;
(b) salary deduction for unauthorised absence from work;
(c) paid public holidays; and
(d) approved paid leave including:
z annual leave;
z hospitalisation leave; and
z maternity leave.
For a monthly-rated employee, the gross rate of pay for one day is calculated as follows:
12 × monthly gross rate of pay
52 × average number of days an employee is required to work in a week
For a piece-rated employee, the gross rate of pay for one day is calculated as follows:
Total pay earned (with allowance) during the 14 calendar days immediately
before a rest day/public holiday/outpatient sick leave
Number of days worked during the same period of 14 calendar days
LOVELY PROFESSIONAL UNIVERSITY 99
