Dear All,
Can anyone tell me about the calculation for Over time if you are covered in ESIC-PF Act.
I heard that you have to deduct ESIC on overtime amount. What will be the rate of overtime if an employee getting Rs4000/month salary and he /she worked for 25 hrs as Overtime in a month.
Is this like that ovetime should be 1.5 or 2 times of normal working hrs?
Awaiting your prompt reply.
Thanks and Regards
Vikas Kumar
9968008206
From India, New Delhi
15Can anyone tell me about the calculation for Over time if you are covered in ESIC-PF Act.
I heard that you have to deduct ESIC on overtime amount. What will be the rate of overtime if an employee getting Rs4000/month salary and he /she worked for 25 hrs as Overtime in a month.
Is this like that ovetime should be 1.5 or 2 times of normal working hrs?
Awaiting your prompt reply.
Thanks and Regards
Vikas Kumar
9968008206
From India, New Delhi
Dear Overetime rate depend on company it should be 1.5 or 2 times of normal working hrs. there will be deduction of ESI on overtime Amount at 1.75% Regards, Amit
From India, Delhi
From India, Delhi
Dear Friend,
Yes it depends on the company,normally most companies consider 2 times because it will be like double pay for over time that you work. And when it comes to ESI it is the same 1.75% of total salary which also inculdes your overtime.
Visit www.esic.nic.in and see if you can get any details apart from what we have given and if at all so do share the same with us.
Hopefully this should help you out to get your problem solved.
Regards
Amith R.
From India, Bangalore
Yes it depends on the company,normally most companies consider 2 times because it will be like double pay for over time that you work. And when it comes to ESI it is the same 1.75% of total salary which also inculdes your overtime.
Visit www.esic.nic.in and see if you can get any details apart from what we have given and if at all so do share the same with us.
Hopefully this should help you out to get your problem solved.
Regards
Amith R.
From India, Bangalore
Under Section 59 of the Factories Act, 1948, Overtime is calculated twice the rate of his / her ordinary wages irrespective of whether you are covered under ESI, PF Act or not. Narration from the Factories Act is as under:
"59. EXTRA WAGES FOR OVERTIME. - (1) Where a worker works in a factory for more than nine 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 at the rate of twice his ordinary rate of wages."
From India, Delhi
"59. EXTRA WAGES FOR OVERTIME. - (1) Where a worker works in a factory for more than nine 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 at the rate of twice his ordinary rate of wages."
From India, Delhi
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