Hr. Khaiser Ali Shah Started The Discussion:
Dear Friends,

Can you please guide me in how to calculate normal overtime hour factor. What I know is

Basic salary X 12Months / 365Days = 1 day avg Basic Salary

1 day avg basic salary / 8hrs = 1 hr avg basic salary

1 hr avg basic salary X 1.5Factor = 1 hr normal overtime cost.

Please tell me if this is the actual true formula if not please guide me for the best one.

Thanks & Regards,
Khaiser Ali Shah
Come on guys no replies, please reply or send some suggestions. Just try to give me the way you calculate the payroll for your company.
Dear Mr Shah,

As per my opinion you can calculate the overtime amt by fixing a certain amt for per hour of extra work & multiply the amt with no. hours of extra work performed which would ultimately give you the Overtime amt earned by an employee. For ex XYZ works for 5hrs extra & let us suppose that we have fixed an amt of 100 rupees per hour for the overtime work so the amt that XYZ would be eligible would be 100*5 = 500Rs.

HR Professional
Overtime calculation

Per day salary Basic salary = (pertaining to the no of days in a month)
= Basic/31 = Salary per day

Per day basic / 8 = per hour salary

Overtime = 1.25*per hour salary*no.of overtime hours worked.

Thanks for reply Liza, I am looking for further suggestions so, come on friends give me the method of your overtime calculation. Once againg thanks to Liza, Khaiser
Overtime calculation varies from country to country depending on the factories act. In India 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.
Dear Murali, That’s OK but it differs from company to company so please send me the one your company follows. Regards
hi all

Mr.Tiwari is right OT should be paid double the wages ;
when calculating hourly wage we should not take 9,10 hours we should only take 8 hours because in Factories act it has been stated that working hours should be 8 hours including all intervals.

And importantly we should not allow an employee to work overtime above 48 hours in 3 months
one company provide to their employee double overtime on the base of gross salary.why they are taking gross for ot
Gross salary-5000
working hours-2
=161 one day wage
=20 per hour
=80 rupees ot
Dear Khaiser, The calculation you have stated s true,but plz look in to the actual(1.25 or 1.5) placed in saudi market Regards HR_HYD


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