Dear Friend,
For OT calculation, it would be as follows: Basic + DA/26/8x2 x number of hours worked. For the monthly salary, it is calculated based on the total days in a month. For example, in March, there are 31 days. If we calculate 2 days' salary for an individual, the calculation would be: Total Gross Salary / 31 x 2 days.
Furthermore, when considering overtime (OT), it will be calculated on a 26-day basis as per the Factory Act under Section 59.
From India, Delhi
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For OT calculation, it would be as follows: Basic + DA/26/8x2 x number of hours worked. For the monthly salary, it is calculated based on the total days in a month. For example, in March, there are 31 days. If we calculate 2 days' salary for an individual, the calculation would be: Total Gross Salary / 31 x 2 days.
Furthermore, when considering overtime (OT), it will be calculated on a 26-day basis as per the Factory Act under Section 59.
From India, Delhi
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Dear All,
Calculating overtime is very simple. It is twice the sum of Basic + DA to calculate the hourly rate. When we calculate the salary based on the number of days in a month for monthly-paid employees, we must consider the days as per the calendar month for per day OT rate calculation. Divide by 8 hours to get the per hour rate.
Per hour OT rate = (((Basic + DA) * 2) / 30) / 8
OT Hours * Per hour OT rate = OT amount
From India, Mumbai
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124Calculating overtime is very simple. It is twice the sum of Basic + DA to calculate the hourly rate. When we calculate the salary based on the number of days in a month for monthly-paid employees, we must consider the days as per the calendar month for per day OT rate calculation. Divide by 8 hours to get the per hour rate.
Per hour OT rate = (((Basic + DA) * 2) / 30) / 8
OT Hours * Per hour OT rate = OT amount
From India, Mumbai
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Thank you for your reply.
I have checked Section 59 in the Factories Act, but it is not clearly mentioned that for overtime (OT) calculation, the monthly salary should be divided by 26 days.
According to the Factories Act 1948, 'Ordinary Rate of Wages' means "the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work."
What all falls under the term 'such allowance,' and how can we determine that OT wages are only Basic + DA?
I am eagerly awaiting your reply.
Anoop
From India, Cochin
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I have checked Section 59 in the Factories Act, but it is not clearly mentioned that for overtime (OT) calculation, the monthly salary should be divided by 26 days.
According to the Factories Act 1948, 'Ordinary Rate of Wages' means "the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work."
What all falls under the term 'such allowance,' and how can we determine that OT wages are only Basic + DA?
I am eagerly awaiting your reply.
Anoop
From India, Cochin
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Dear All,
Calculate overtime as follows in a simple way: (Monthly salary X Hrs worked(OT) / 240) X 1.5 or 2 (as applicable - 1.5 times or double).
240 hours for a 30-day month and 248 hours for a 31-day month.
Regards, MS
From India
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Calculate overtime as follows in a simple way: (Monthly salary X Hrs worked(OT) / 240) X 1.5 or 2 (as applicable - 1.5 times or double).
240 hours for a 30-day month and 248 hours for a 31-day month.
Regards, MS
From India
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HI SIR PLEASE SUGGEST OVER TIME CALCULATION FOR GROSS SALARY ( PER DAY RATE 427 WORKING DAY-26 AND EARNED AMOUNT 15600
From India, Chandigarh
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From India, Chandigarh
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Dear All,
1. Overtime is always double, irrespective of the number of extra hours put in.
2. The amount per overtime hour is calculated as follows: {Gross / (number of working days in a month) / 8} * 2. For example, if the gross salary of a person is 3300/-, then in the month of January, the per hour overtime rate would be (3300 / 25 / 8) * 2 = Rs. 33.00. In the month of February, it would be (3300 / 24 / 8) * 2 = Rs. 34.38, and so on.
For more clarity, please refer to the Payment of Wages Act along with the Factory Act.
From India, Vadodara
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1. Overtime is always double, irrespective of the number of extra hours put in.
2. The amount per overtime hour is calculated as follows: {Gross / (number of working days in a month) / 8} * 2. For example, if the gross salary of a person is 3300/-, then in the month of January, the per hour overtime rate would be (3300 / 25 / 8) * 2 = Rs. 33.00. In the month of February, it would be (3300 / 24 / 8) * 2 = Rs. 34.38, and so on.
For more clarity, please refer to the Payment of Wages Act along with the Factory Act.
From India, Vadodara
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