Inclusion of allowances in overtime calculation
potter4
(Querist) 28 October 2015
This query is : Resolved
Do we include allowances like HRA/medical/Conveyance/educational or any other compensatory/incentive while calculating overtime ? (Under maharashtra shops and establishment act/factories act?)
Can you refer to some latest case laws ?
Thank you.
Kumar Doab
(Expert) 28 October 2015
NO.
OT is other than all of these.
OT of a month should be paid alongwith earned wages on usual/fixed pay day, and narrated in salary slip, alongwith all other allowances mentioned by you.
OT is applicable and explained in the Act.
potter4
(Querist) 29 October 2015
Dear Sir,
I understand OT is separate than all other allowances. The question is not whether OT should be paid or not. We are paying OT as per Act.
The question is of calculation:
A) OT = 2 * (Basic + Da) or whether it is
B) OT = 2 * ( Basic + DA + HRA/Medical/conveyance/other allowances)
Recent case law for the same will help in finalizing formula.
K.S.Srinivas
(Expert) 29 October 2015
It is to be calculated at double the rate of ordinary rate of wages drawn by him .
For details, pl. read sec. 59 of factories act.
Kumar Doab
(Expert) 29 October 2015
Likewise go thru:
Bombay shops and establishment act, rate of OT and def. of wages.
Usually it is monthly wages............
