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AJAYKUMAR NAIR (SERVICE)     03 May 2011

Overtime calculation

How do we calculate OVERTIME. Is it done on BASIC + DA, or GROSS SALARY.



Learning

 5 Replies

Om Prakash Dhusia (HR assistant)     03 May 2011

It is only your basic pay + DA.

Regards.

Sarvesh Kumar Sharma Advocate (Advocacy)     03 May 2011

yes basic pay +d.a.


(Guest)

 

@AJAYKUMAR NAIR

INDIA - Indian labour law concerning OT (Central & States) says that we are to make payment to the worker/employee @ double the ordinary rate of wages/ normal wages. According to me The Factories Act,1948, The Minimum Wages Act,1948 & State Shops & Commercial Establishment Acts provides us procedure for taking OT & for calculating the OT payments. Section 59 of Factories Act says that where a worker works on OT he will be entitled to wages at the rate of twice his ordinary rate of wages. According to Rule 25 of Minimum Wages (Central) Rules, 1950 also states that OT is to be given at double the ordinary rate of wages. According to the Minimum Wages Act & Rules we are to divide the rate of wages by 26 for calculating 8 hours (one day) wages. For calculating one hr. wages we are to divide by 8 to one day wages. Thus if we take OT for one hour then we are to paid wages @ double this wages for one hour. State Shops & commercial Establishment Acts also provides provisions for OT payments. You may go through these enactments for having more clarification on the subject.

Source:https://www.citehr.com/240424-how-calculate-overtime-formula-overtime.html

1 Like

S.R.Chandrasekaran (proprietor)     04 May 2011

The OT is to be calculated on the amount of salary on which PF is calculated.Genaerally it is basic plus DA
 

sameer (Asst Manager)     11 November 2013

Dear Sir,

 

please inform us following questions:

1. Per day how many hrs work allowed as per factory act?

2. Per month total how many hrs work allowed as per factory act?

 

sir, you are requested to please revert me on my email sameer.sayyad@hawavalves.com

Regards,

Sameer


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