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how to calculate ot its on basic + Da or on gross salary
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Dear Member, First decide the applicability of the Act under which you are liable to pay the overtime to your employees/ workers & then go through the provision relating to OT payment. R.N.KHOLA
it’s simple 1 hr ot = (((basic+DA)/26)/8)*2 26 indicates no. of days in month. 8 indicates no. of hours per day This formula is using in my company.....
Dear Member,
If your wage structure also includes other components other than Basic & DA then plz let us know under which of the Act you utilizing this formula for proper enforcement of OT payment.

Dear Member
Sub-Sec (1) Sec. 59 of Factories Act 1948 provides :- where a worker works in a factory for more than 9 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 his ordinary rate of wages.
Sub-sec.(2) of Sec.59 provides that "ordinary rate of wages" means the basic wages plus such allowancs, including the cash equivalent of the advantages through the concessional sale to workers of foodgrains and other articles as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work.
to calclaculate OT
Basi+DA /30 =one day wages divded by 8 = 1 hour wages multiplied by 2 you gat twice the rate of OT .
RLDhingra , Advocate & Labour Law Consultant , 09818309937
Hi Mr. Dhingra, Absolutely correct and has given ideas to those who calculating Over time on Basic+DA.
Dear Mr.Dingra,
Under the Minimum Wages act the wages are considered for 26 days and this is being followed under the Gratuity act also. in in pay roll computations also we divide the wages by 26 to arrive at loss of pay.
On the same basis, I was under the impression that for OT the Basic + DA has to be divided by 26 instead of 30. Kindly correct me if I am wrong.
Dear MV Kannan ,
We divide the wages by 26 because the it include the weekly off days
but when you calculate OT divide the monthly wages by 30 and then by 8 to get hourly wages and multiply by 2 because the workman has to be paid at twice the rate. In case of employment in agriculture it be multiplied by 1.5 times .
RLDhingra , Advocate and Labour Law Consultant , 09818309937
Dear Mr. Dhingra,
Our company is already paying basic less than minimum wage as per decided in our zone, but while looking the gross, it shows more than minimum wage.
Due to keeping less basic than minimum wage, we are calculating OT on gross that too Single and NOT double..........is that fine ?
Waiting for your reply
Thanks & Regards
-Sandeep Patel
(M): 9725667986
Kindly note that the term here "Ordinary Rate" refers to gross salary but the labour officers allows to calculate on Basic + DA
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
Dear All
OT will be calculated on Basic + DA + any other fixed allownaces like House Rent allownace (which is paid monthly & on a regular basis).
Any fixed allowance , paid on monthly basis, please check with law of the land before OT exemption .
In my point of view over time is paid on gross salary i.e gross salary/26/8 * working hours * 2, 26 stands for working days 8 stands for working hours whereas 2 stands for twice the rate of wages.
Thanks & Regards,
Sumit Kumar Saxena
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