Hr. Khaiser Ali Shah
9

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
00966509928983

From Saudi Arabia, Riyadh
Hr. Khaiser Ali Shah
9

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.
From Saudi Arabia, Riyadh
aparna_ios
1

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.
Regards
Aparna
HR Professional

From India, Gurgaon
lizancy
10

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.
Liz

From Australia, Adelaide
Hr. Khaiser Ali Shah
9

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
From Saudi Arabia, Riyadh
NKTiwari
3

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.
From United States, Cambridge
Hr. Khaiser Ali Shah
9

Dear Murali, That’s OK but it differs from company to company so please send me the one your company follows. Regards
From Saudi Arabia, Riyadh
vasu_hr
2

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

From India, Bangalore
dev.rek2007
hi,
one company provide to their employee double overtime on the base of gross salary.why they are taking gross for ot calculation.like
Gross salary-5000
working hours-2
month-may
=5000/31
=161 one day wage
=161/8
=20 per hour
=80 rupees ot

From India, New Delhi
HR_HYD
1

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
From India, Hyderabad
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