paulhricmc
5

Hi Everybody, Can anyone explain me how do we calculate the payment of overtime as per factory act 1948 and what are the deduction to made on the overtime. Please Explain me. Regards. Paul
From India, New Delhi
mike1957
2

Dear Mr.Paul,
Vide section 59 of factories act,1948, contemplates that if a worker works in a factiory for more than 9 hours in any day or for more than forty eight hours in any week he shall, in respect of overtime work, be entitled to wages @ twice his ordinary rate of wages.
Here wages means the basic wages plus such allowance including the cash equivalent. BUT most of the company pay only twice the basic.
for instance if a worker works for 5hours OT and his basic is Rs.1000/- per month the calculation would be as follows:
Basic per month / 30( to arrive at per day basic)/8( to arrive at per hour basic)* 5 ( no hours of OT).
hope it is clear
Regards
Michael Nicholas

From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.