Hi, How do I find the guidelines for overtime pay in the private sector / BPO industry? I understand it is 1.5 times for the weekend but how do I calculate the hourly rate for overtime during the week.
All help is appreciated.
Thanks!
From India, Chennai
All help is appreciated.
Thanks!
From India, Chennai
BPO industries are covered under S & E Act of the State. Accordingly the calculation of OT and payment terms will be determined.
Now the question is how to determine per hour salary/wages. I hope the organization is paying on monthly basis. In that case the monthly salary may be divided by the 30,31,28 or 29 as the case may be or by 30 only. There are organizations who are following the formula
monthly salary x 12 / 365 is per day salary. In all above cases daily salary may be divided by 8 to obtain per hour salary. There is no specific rule in this regard. It depends on Co's policy.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
334Now the question is how to determine per hour salary/wages. I hope the organization is paying on monthly basis. In that case the monthly salary may be divided by the 30,31,28 or 29 as the case may be or by 30 only. There are organizations who are following the formula
monthly salary x 12 / 365 is per day salary. In all above cases daily salary may be divided by 8 to obtain per hour salary. There is no specific rule in this regard. It depends on Co's policy.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
Thank you for the clear response, is overtime calculated on all components of monthly salary including HRA and allowances or just Basic? Thanks
From India, Chennai
From India, Chennai
Shop and Establishment Act mostly requires that overtime be paid for anyone working beyond 9 hours in a day or 48 hours in a week (whichever is exceeded first). I have no idea where you got the 1.5 times figure.
In order to compute the hourly rate, take the monthly rate divide by 26 to get daily rate and then by 8 hours to get hourly rate. This is as per certain court guidelines in other acts that made 26 days as standard working days for ever company. You can divide by 30 / 31 or other methods if you can justify the same, but dividing by 26 is safer. The difference is not significant in most cases.
From India, Mumbai
In order to compute the hourly rate, take the monthly rate divide by 26 to get daily rate and then by 8 hours to get hourly rate. This is as per certain court guidelines in other acts that made 26 days as standard working days for ever company. You can divide by 30 / 31 or other methods if you can justify the same, but dividing by 26 is safer. The difference is not significant in most cases.
From India, Mumbai
Hi SKR,
Pl.refer TN govt.'s Shops & Establishment act for this purpose.
Refer.Sec.31 of Chapter VII - Wages. Copy attached.
Wages for overtime work-- Where any person employed in any establishment is required to work overtime, he shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.
And Rule 10 of the TNSE Rules, 1948 attached.
10. Manner of calculating ordinary rate of wages.— For the purpose of the Explanation to section 31, ordinary rate of wages per hour shall be calculated by dividing the total wages payable to a person employed for the hours actually worked by him during the wage-period by the number of such hours in the wage-period.
Provided that hours worked by a person employed in excess of the normal daily hours during the wage-period shall be excluded in calculating the number of hours actually worked by him.
From India, Bangalore
Pl.refer TN govt.'s Shops & Establishment act for this purpose.
Refer.Sec.31 of Chapter VII - Wages. Copy attached.
Wages for overtime work-- Where any person employed in any establishment is required to work overtime, he shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.
And Rule 10 of the TNSE Rules, 1948 attached.
10. Manner of calculating ordinary rate of wages.— For the purpose of the Explanation to section 31, ordinary rate of wages per hour shall be calculated by dividing the total wages payable to a person employed for the hours actually worked by him during the wage-period by the number of such hours in the wage-period.
Provided that hours worked by a person employed in excess of the normal daily hours during the wage-period shall be excluded in calculating the number of hours actually worked by him.
From India, Bangalore
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Guidelines.doc