Terminal Benefits of Construction Labour

Dear Readers,

Even though, the construction industry is the second largest employer in India, after agriculture. The casual nature of jobs in the unorganized construction sector can lead to poor working conditions, low salaries, and less job security. Construction projects are often located in remote sites, can be unpredictable, and there is a high chance of encountering unforeseen problems like weather. 

Terminal benefits are final entitlements of an employee upon termination of an employment contract. It is nothing but Money paid to an employee whose employment has been terminated because of a closedown or downsizing. 

Below Table shows the industrial practice of Terminal benefits for construction Workmen. A contingency has been included, which will be tailored to your requirements.

Please note that, if you leave the company on your own accord before the expiry of the notice period, you will not be eligible for retrenchment compensation as per the retrenchment notice already issued.

For costing, estimating, or rate analysis purposes, terminal benefit calculations are crucial to avoid significant crises. Calculating necessary cost provisions periodically and maintaining them can prevent financial crises and last-minute surprises.

For More Details about Basic Wages Click ABW

For More Details about Man Day & Man Hour Click Here

For More Details about Labour Welfare Click Here

For More Detail about Labour Law in India Click Here

Man Day and Man Hour

Dear Readers,

Man Day (MD) is used in construction industry to estimate the manpower and costing purpose

MD refers Man Day; it is a unit of measurement for workforce. An industrial unit of production equal to the work one person can produce in a day.

Other Unit of Measurements are Man Hour and Man Month are commonly used in construction industry for the similar works depends upon the nature of work. It is used for estimation of the total amount of uninterrupted labour required to perform a task.

Man-hours exclude the breaks that people generally require from work, e.g. for rest, eating, and other bodily functions. They count only pure labour. Managers count the man-hours and add break time to estimate the amount of time a task will actually take to complete.

Eight Hour working is called One shift and one person working one shift (8 Hours) is called one-man day. Decide what constitutes a "man day." In most cases, a "man day" is eight hours, although that is up to a company to decide.

If the work gang comprises 10 workmen and working one shift is equal to 10 MD and if the gang works 6 days then it is 60MD.

In construction industry over time is exists. It is subject to the nature of job. Normally 3 Hours overtime is regular in all sites. However, benefits will not be applicable on overtime wages.

During MD rate calculations terminal benefits are subject to the duration and local site environment

MD rate arrives from

 ABW (Average Basic Wages)

 Over Time Wages

 PF & Admin. Charges of employer portion

 Terminal benefits