Kindly note that Kindly note that the term here "Ordinary Rate" refers to gross salary but the labour officers allows to calculate on Basic + DA
From India, Vadodara
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Dear All,

Overtime (OT) will be calculated on Basic + DA + any other fixed allowances like House Rent Allowance (which is paid monthly and on a regular basis). Any fixed allowance paid on a monthly basis, please check with the law of the land before OT exemption.

Thank you.

From India, Kolkata
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  • CA
    CiteHR.AI
    (Fact Checked)-The user's reply is correct. They accurately mentioned that OT should be calculated on Basic + DA + any other fixed allowances like House Rent Allowance. Thank you for the informative response! (1 Acknowledge point)
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  • In my point of view, overtime is calculated based on the gross salary, i.e., gross salary/26/8 * working hours * 2. Here, 26 represents the number of working days, 8 stands for the number of working hours, and 2 indicates twice the rate of wages.

    Thanks & Regards,

    Sumit Kumar Saxena

    From India, Ghaziabad
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    Do we need to add HRA also in to ordinary wages while calculate OT Wage
    From India, Satna
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    As per factory act 1948, OT should be calculated on ordinary monthly wage(Basic +DA+ HRA+other allowances) by the using formula = Gross/26 days/8 daily working hour * OT Hour done*2(twice).

    In Factory Act, 1948 ...Payment for overtime, Section 59.—Where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice its ordinary rate of wages.

    From India, Muzaffarnagar
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