In factories, while calculating the OT, sundays to be removed. basicwages/26/8 hrs. it should be double in India and 1.5 times in UAE
From India, Lucknow
604From India, Lucknow
accoring to factories act, I agree with Mr. KTiwari's openion. Overtime is given as double the normal rate(Basic+DA) for the extra durt hours. If it is 31 days duty then one hour rate is found as A/31/8 and if it is 26 days work then one hour rate is found as A/26/8 and so on.
*Average Basic salary may be considered on monthly basis only.
venkat
From India, Bangalore
*Average Basic salary may be considered on monthly basis only.
venkat
From India, Bangalore
hi, overtime calculated with double rate of normal wages i.e. Basic+DA, my question is there no place for the allowances in Overtime?
From India, Delhi
From India, Delhi
I have good file for you related to overtime but an able to attached it give you email and I will mail it to you
From Bahrain
From Bahrain
Dear All,
As per Factories Act 1948 calculation of overtime wages is as follows.
Upto 9 hrs per day or 48 hrs per week, it is normal rate. In excess, the rate will be doubled.
Accordingly calculate the difference between the scheduled working hours and the hours secified above. For the difference the OT payment will be @single rate and in excess double. If there is any difference between the calculation on daily and weekly basis, whichever is beneficial to employee has to be paid.
For example: A company woks 6 days in a week with a uniform working time of seven and half hrs per day (8hrs including 30 minutes break). Let a worker works for 2.5 hrs extra, i.e total 10 hrs in a day, whose per hour remuneration is Rs.30/. Then the over time payment calculation will be as follows.
1) Daily basis : Scheduled time - 7.5 hrs
OT time @ normal rate - 9 -7.5 = 1.5 hrs
OT payment - 1.5 x 30 = Rs. 45 - (A)
OT time @ double rate - 10 - 9 = 1 hr
OT payment - 1 x 30x2 = Rs. 60 - (B)
Total - 45+60=105/-
2) Weekly basis : Scheduled time - 7.5 x 6 = 45 hrs
OT time @ normal rate - 47.5 -45 = 2.5 hrs
OT payment - 2.5 x 30 = Rs. 75 - (A)
OT time @ double rate - 47.5 - 48 = NA
OT payment - 0 x 30x2 = Rs. 0 - (B)
Total - 75+0=75/-
Whichever high is Rs. 105 (daily basis)
If the above worker works additional 2.5 hrs each for three days in the same week, then the calculation will be as follows.
1) Daily basis : Scheduled time - 7.5 hrs
OT time @ normal rate - 9 -7.5 = 1.5 hrs
OT payment - 1.5x3 x 30 = Rs. 135 - (A)
OT time @ double rate - 10 - 9 = 1 hr
OT payment - 1x3 x 30x2 = Rs. 180 - (B)
Total - 135+180=315/-
2) Weekly basis : Scheduled time - 7.5 x 6 = 45 hrs
OT time @ normal rate - 48-45 = 3 hrs
OT payment - 3 x 30 = Rs. 90 - (A)
OT time @ double rate - 52.5 - 48 = 4.5 hrs
OT payment - 4.5 x 30x2 = Rs. 270 - (B)
Total - 90+270=360/-
Whichever high is Rs. 360 (weekly basis)
Abbas.P.S
From India, Bangalore
As per Factories Act 1948 calculation of overtime wages is as follows.
Upto 9 hrs per day or 48 hrs per week, it is normal rate. In excess, the rate will be doubled.
Accordingly calculate the difference between the scheduled working hours and the hours secified above. For the difference the OT payment will be @single rate and in excess double. If there is any difference between the calculation on daily and weekly basis, whichever is beneficial to employee has to be paid.
For example: A company woks 6 days in a week with a uniform working time of seven and half hrs per day (8hrs including 30 minutes break). Let a worker works for 2.5 hrs extra, i.e total 10 hrs in a day, whose per hour remuneration is Rs.30/. Then the over time payment calculation will be as follows.
1) Daily basis : Scheduled time - 7.5 hrs
OT time @ normal rate - 9 -7.5 = 1.5 hrs
OT payment - 1.5 x 30 = Rs. 45 - (A)
OT time @ double rate - 10 - 9 = 1 hr
OT payment - 1 x 30x2 = Rs. 60 - (B)
Total - 45+60=105/-
2) Weekly basis : Scheduled time - 7.5 x 6 = 45 hrs
OT time @ normal rate - 47.5 -45 = 2.5 hrs
OT payment - 2.5 x 30 = Rs. 75 - (A)
OT time @ double rate - 47.5 - 48 = NA
OT payment - 0 x 30x2 = Rs. 0 - (B)
Total - 75+0=75/-
Whichever high is Rs. 105 (daily basis)
If the above worker works additional 2.5 hrs each for three days in the same week, then the calculation will be as follows.
1) Daily basis : Scheduled time - 7.5 hrs
OT time @ normal rate - 9 -7.5 = 1.5 hrs
OT payment - 1.5x3 x 30 = Rs. 135 - (A)
OT time @ double rate - 10 - 9 = 1 hr
OT payment - 1x3 x 30x2 = Rs. 180 - (B)
Total - 135+180=315/-
2) Weekly basis : Scheduled time - 7.5 x 6 = 45 hrs
OT time @ normal rate - 48-45 = 3 hrs
OT payment - 3 x 30 = Rs. 90 - (A)
OT time @ double rate - 52.5 - 48 = 4.5 hrs
OT payment - 4.5 x 30x2 = Rs. 270 - (B)
Total - 90+270=360/-
Whichever high is Rs. 360 (weekly basis)
Abbas.P.S
From India, Bangalore
Hi,
Formula for overtime calculation is wages which they get per day/8*No.of Hrs.OT*2.
Thanks and Regards
Manjunath
Human Resources
PSK Engg.Pvt.Ltd
Mob:9980342847
more at https://www.citehr.com/69550-overtim...#ixzz16NdpxULa
From India, Kochi
Formula for overtime calculation is wages which they get per day/8*No.of Hrs.OT*2.
Thanks and Regards
Manjunath
Human Resources
PSK Engg.Pvt.Ltd
Mob:9980342847
more at https://www.citehr.com/69550-overtim...#ixzz16NdpxULa
From India, Kochi
Dear Manjunath,
As per the Factories Act I have funished the details on calculation of overtime payment. Accordingly the difference between 9hrs per day and the daily scheduled time or 48hrs and the weekly scheduled time, as the case may be; normal wages will be paid. Beyond this, it will be double. i.e. the overtime payment will be a mixture of normal and double rates.
But according to you it is double of the normal rate for the whole overtime. Please share that how we can byepass the Factory Act and what is the alternate legislation for your calculation?
Abbas.P.S
From India, Bangalore
As per the Factories Act I have funished the details on calculation of overtime payment. Accordingly the difference between 9hrs per day and the daily scheduled time or 48hrs and the weekly scheduled time, as the case may be; normal wages will be paid. Beyond this, it will be double. i.e. the overtime payment will be a mixture of normal and double rates.
But according to you it is double of the normal rate for the whole overtime. Please share that how we can byepass the Factory Act and what is the alternate legislation for your calculation?
Abbas.P.S
From India, Bangalore
i want to know that if i work on monday tuesday and wednesday from 9am to 9pm daily and after that i take leave from company from my annual leaves so how my overtime will be calcualte please reply
From Pakistan, Karachi
From Pakistan, Karachi
Dear Concerned,
As per Factories Act, we can get OT work done only for one hour daily at the maximum and payment will be for two hours (i.e. double).
Calculations: His Total Wages (All Inclusive)/208xOT Hoursx2. (here 208= 26daysx8Hours)
This Payment of OT will attract ESI Contribution(if applicable) and not PF Contribution.
V K Gupta
From India, Panipat
As per Factories Act, we can get OT work done only for one hour daily at the maximum and payment will be for two hours (i.e. double).
Calculations: His Total Wages (All Inclusive)/208xOT Hoursx2. (here 208= 26daysx8Hours)
This Payment of OT will attract ESI Contribution(if applicable) and not PF Contribution.
V K Gupta
From India, Panipat
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