calculation of overtime allowance UNDER BOMBAY SHOP ACT
hemant t gawale
(Querist) 11 November 2010
This query is : Resolved
WE ARE F C I ( GOVT UNDERTAKING )EMPLOYEES
Bombay shop and establishment act is applicable to us
TILL THE LAST MONTH THE OVERTIME WAS CALCULATED ON BASIC + HRA U/S 63AS PER THE PROVISIONS OF BOMBAY SHOP AND ESTABLLISHMET ACT 1948
NOW THE MANAGEMENT IS SAYING THAT THE HRA SHOLD NOT BE INCLUDED WHILE CALCULATING OTA
UNLESS THERE IS SPECIFIC PROVISIONS UNDER THE BOMBAY SHOPS AND ESTABLISHMENT ACT
PLZ GUIDE
Raj Kumar Makkad
(Expert) 11 November 2010
Once a beneft given cannot be withdrawn suo-motto and arbitrarily. When the employees are already being paid OTA calculated on the basis of basic wages plus HRA then it has got no right to reduce the benefit of the employees without any base.
Pushpa Rawat
(Expert) 11 November 2010
Dear Hemant,
As per the law, the OT is calculated on the gross salary which inclued Basic, HRA and all other allowances that the co pays you.
The OT should be double of your gross salary. If your monthly salary is Rs. 10000 a month. The daily gross salary is 10000/30 or 31 days = 323. Daily hour gross salary is = Rs. 40.
Now suppose your OT is 50Hrs in a month.
Hence, 50*(40*2)=4032.
Let me know if any query on this.
Regards,
Pushpa
