Sumitk.saxena
Service/manager-hr
Akhil.Gupta
Hr Professional With 8 Years Of Exp.
Sts.001
Regional Hr
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Consultme
Entrepreneur
Karthik Nayudu
Regional Manager - Hr
Deepmahe
Hr Executive
Karnarun
Service
Srinivasbhaskar
Sr. Officer - Hr & Admin
Sureshrd
Pf And Esi
Bhagwate.suhas@gmail.com
Assistant Hr Manager
Thavaselvan07
Hr Executive
+21 Others

Thread Started by #Deepmahe

Dear All! How to calculate the OT payment our salary structure is Basic,HRA and Conveyance
6th February 2012 From India, Delhi
Dear Friends,
I am into industrial automation company. We have various project engineers. We also send them on project sites.
I would like to know how to mark their attendance and how to calculate their salary with overtime. Also, we provide them per day site charges too with basic salary.
I will appreciate if anybody can attach a sample file for guidance.
Thanks
6th February 2012 From India, Delhi
Please Refer my ealier thread.
Please help in designing policies for our employees.
I have to design leave, conveyance, mobile policy.
In our organisation maximum employee are in projects.
Regards,
Deepa
6th February 2012 From India, Delhi
Dear Deepmahe, Please clarify what is the O.T. rate.According to factory act 1948 we must pay O.T. double than there wages. With Regards, Vineet Deshmukh
6th February 2012 From India, Yavatmal
Dear Deepmahe,
O.T. is calculated as follows:
Gross Salry : 5,000 P.M
Daily wages: (Gross Salary/No. of working days here its may considered as 26) Rs. 192.30
Hourly Rate: (Daily rate/no. of working hrs here it may considered as 8.5 hrs/day) Rs.22.62
O.T. Rate : (Hourly Rate*2)
With Regards,
Vineet Deshmukh
6th February 2012 From India, Yavatmal
As per the Factory Act 1948, daily 9 hrs and weekly 48 hrs (including the normal working hours) will be treated for normal / single payment. Beyond above the payment will be treated as double.
If the both calculations (daily and weekly) differ, whichever is beneficial for employee has to be taken into account.
Abbas.P.S
6th February 2012 From India, Bangalore
Thanks all for your honest suggestions. I know the OT Calculation method. I just want to know how we will enter details in excel while making salary. I will be happy if anybody can share a excel format of it.
Thanks
Deepa
6th February 2012 From India, Delhi
How many employees you got. Can you manage the entire transactions in xls - it can be tedious, right? Why don’t you explore Attendance management tools?
6th February 2012 From India, Bangalore
These are the right Calculation but you can always maintain the excel with formula’s for the same. This should always be maintained in excel.
7th February 2012 From India, New Delhi
Don't think as above. For daily basis the double payment is entitled after 9 hours only. For example, if you worked 8 hours as regular duty and 4 hours as OT; the OT payment calculation will be as follows.
For 1st hour - single, i.e 1x1=1 -(A)
For balance 3 hours - 3, i.e. 3x2 = 6 -(B)
Total - (A) + (B) = 6+1 = 7.
Abbas.P.S
7th February 2012 From India, Bangalore
Dear Deepa, Pl find enclosed herewith the Complete Salary & OT calculation formate. Hope this will serve your purpose.
7th February 2012 From India, Delhi

Attached Files
Membership is required for download. Create An Account First
File Type: xls Cont.Wages.xls (225.0 KB, 788 views)

Dear Sir,
I am Subhajit Bhowmick Atts. Manager HR. I just want to know the Gratuty calculation under the West Bengal Act.
Exmp. One employees His DOJ- 02-05-2005 & DOL- 10-02-2012, Gross salary- 6013/- And his Basic Salary- 3007/-.
How Would I calculated the Gratuty Amount.
Tahnks & Regards
Subhajit Bhowmick
(subhajitbhowmick@yahoo.in)
7th February 2012 From India, Calcutta
Gratuaty=Basic/26*15*no of years Service in case of Above Ex. Gratuaty=3007/26*15*7=12144/-
7th February 2012 From India, Delhi
Dear Deepa mahe
Mr.Abbasitti is right. As per Factories Act, when a worker is required to work beyond 9 hours per day subject to the maximum of 48 hours per a week.
B.Saikumar
HR & Labour Law consultant
Mumbai
Tel: 09930532927
7th February 2012 From India, Mumbai
Dear, Please find herewith attached format for Over Time Calculation Regards, gurpinder
8th February 2012 From India, Chandigarh

Attached Files
Membership is required for download. Create An Account First
File Type: xls OT Calculation FORMAT.xls (14.0 KB, 731 views)

Dear Mr. Subhajit,
Gratuity is covered by Central Govt.
Gratuity will be calculated on Baisc+DA and will be calculated on last salary drawn.
You can calculate with 2 Methods:
1. Basic+DA * 15/26* No. of Years
2. Basic+ DA * 4.81%* No. of Months Served.
In your case:
X Employee total service years would be 6 Years 8 Months and 8 Days.
So, we will be rounding it off to 7 years.
Now apply on Basic:-
1. His gratuity through formula - 3007 * 15/26 * 7 = Rs.12,144
2. his gratuity will be 3007 *4.81%*84 = Rs. 12,150.
Regards,
Deepmahe

8th February 2012 From India, Delhi
Hi Deepa,
I had prepared an excel file showing calculations for OT based on my understanding. Hope its useful to you. As per the Factory Act 1948, daily working hours is 9 hrs and weekly is 48 hrs will be treated for normal wages. Beyond above the payment will be treated as double the wages.
Regards
Pranay
8th February 2012 From India

Attached Files
Membership is required for download. Create An Account First
File Type: xls OT CALCULATION TABLE.xls (27.5 KB, 881 views)

Dear All

As per statutory i do agree and respect the Acts but we should also consider the profitability of the organization. In industries if OT is more than 2 hrs it will be considered as 1/2 day wage and if OT is more than 4 hrs one day wage should be paid.

If employee works on National Holidays or Weekly halfs we have to pay them double wage and compensotary off with in next 3 days practically can you imagine how much salary a normal employee gets if we pay as per Law?

Do you think that Employee dedicatedly work for 8 hrs in a day? Thay will have many breaks for Tea, Smoke, Chating, Meeting, Lunch etc. In current scenario of the market an employee must give 8hrs quality work that implies minimum 10hrs on duty every day to meet the expectations and turn around time of the company.

Following all the regulations and laws as per State and Central rules is OK to some extent. Govt will not do any ammendments except increasing the minimum wage for every 6 Months. AP govt is step ahead by making Minimum wage under Shops & Establishments above Rs.5000/- where they will get Rs.60/- every month from each employee as professional tax.

As per Acts employee is eligible for 12 CL, 12 SL 15 PL(after completing 140 working days) and 52 Weekly offs, 11 National Holidays Total : 102 Holidays in a year.

In Inductions for new joinees and other training sessions from HR if you educate all the ground staff on the statutory benefits, employees will try to avail all the benefits.

It's purely my perception on the topic, it may vary from seniors opinions.

Please revert if my perception is wrong................

Chills 'N' Cheers

Karthik Nayudu
9th February 2012 From India, Vijayawada
Hi Pranay Any statutory payment will be made on Basic + DA. OT is not on Gross it is on basic + DA, please correct. Any ways good effort, Keep it up ...... Chills Karthik Nayudu
9th February 2012 From India, Vijayawada
Hi
Attached the OT Register Formatt Along with the calculations of OT Pay,
Make required changes like Employee Name, Designation, Gross Wage in Data Sheet All other sheets are linked.
Regards
Gokul Devadiga
17th February 2012 From United States, Harrisburg

Attached Files
Membership is required for download. Create An Account First
File Type: xls OT Draft 2012.xls (1.93 MB, 724 views)

Dear Karthik

Please note that the OT Payment is made on Gross i.e. Basic+DA+Allowance+Cash equivalent.

Find below the Defination of ordinary wage as per factories Act (Confirmed by inspector of factories).

Extra wages for overtime.

(1) Where a worker works in a factory for more than nine hours in any day or for more than fortyeight 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.

2*[(2) For the purposes of sub-section (1), "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 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.

And is there any rules in factories act with respect to SL and CL ????

Further please note the OT limit is 75 Hrs a Week i have put cap on 48 Hrs as per our organisation standards.

Regards

Gokul
17th February 2012 From United States, Harrisburg
hi deepa please ensure you have to pay ESI for that OT amount paying to the workers . Also it should not exceed 50 hours in the continuous three months naveen 0-9677-010-010
21st February 2012 From India, Madras
Hi deep Can u call me i will clear u r doubt ( U want excel format for OT or u wanted to get the attendance of them (out going projects engineers) naveen 0-9677-010-010
22nd February 2012 From India, Madras
dear members all
i find some problems in my payroll software where its count single to TO calculation so that is on gross bt as per view tis on basic and 1.5time right so plz give your view??
thank u
dipal
22nd February 2012 From India, Ahmadabad
hi dipal
please make sure OT calculation should be taken as 2times in the wages.you can change u r software or enter it double so it will compensate equally even if u r software is wrong . eg if workers works for 2 hours u enter it as 4 hours since u r payroll taking it for single.
naveen
0-9677-010-010
22nd February 2012 From India, Madras
Dilipji its very simple as per the statutory act and 2 years back high court ordered in one of proceeding. OT = Gross salary / 26days/ 8 hrs * 2 (double of wages) is per hour OT rate. BS
23rd February 2012 From India, Bangalore
Dear concerned, I am in automobile sector, we r providing doule ot, but can any one having any simple ways for calculting the overtime on line as we have pyaroll software.
27th February 2012 From Singapore, Singapore
Dear Friends
I am new to Manufacturing Sector, OT plays a signficant role in manufacturing sector. It is a very informative post. Got a lot of information on how to calculate Over Time. Thanks all for providing the information. Keep up the good work.
Thanks all
Sonu Joshi
27th February 2012 From India, Hyderabad
Dear Sirs,

I was under the impression that PF coverage is mandatory to an extend of Rs.6500/- basic for all the employees irrespective of their salary even if it(basic) is more than 6500/-. But the following FAQ mention that PF contribution is optional for the employees getting more than Rs.6500/- salary.

Please give a clarification for the above by reply message by quoting the specified provision of the PF Act.

The following are the extract from the ‘FAQ’

Q1) Is it Compulsory for the all the employees to contribute to the Provident Fund?

Ans : Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund .

Q2) Is it beneficial for employees who draw salary above Rs 6501/- to become member of Provident Fund?

Ans Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.

Q3) What if an employee while joining establishment has a basic salary of Rs 4200 and after some period of time his basic salary increases above Rs 6501/-, does he have an option to terminate his member ship form the Provident fund act?

Ans : Employee who while joining the organisation has a basic salary above Rs 6501/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 6501/- but after some period of time their basic increases above Rs 6501/- have to compulsorily continue to be member of provident Fund.

If the above provision is correct which form we need to take the declaration from the employees (drawing more than 6500/- basic)about the excemption from coverage of the PF

Thanks for the support.

Chandran
27th February 2012 From India, Bangalore
Employee who joined EPF has to continue till the end of service, even if the salary is above Rs. 6500. The statutory non obligation to join EPF in case of those draw salary above Rs. 6500 is only for fresh hands (i.e who not registered with EPF).
Abbas.P.S
28th February 2012 From India, Bangalore
Hi everybody,
Greetings,Kindly give idea for the below doubt in OT:
If my per day salary is Rs.500/- and if I work on a national holiday i has to get double OT.So what will be the amount?
Because already i am getting that 500/- in my salary being it is a paid holiday.
So what amount should i get additional? Rs.500/- OR Rs.1000/-?
Pls clarify:
Nishant
Thrissur
19th June 2012 From India, Ahmadabad
In my organization they deduct the PF from basic salary that is 12 % from the basic not exceeding 6500 x 12 % last PF deduction is 780. Is it correct or not ?
19th June 2012 From India, Hyderabad
Statutory obligation is only on ceiling salary, i.e Rs. 6500. Accordingly contribution of Rs. 780 is ok. Abbas.P.S
20th June 2012 From India, Bangalore
Attached here with excel sheet which can automatically calculate OT, HRA and basic. Regards Vivek Netan
20th June 2012 From United States, Anchorage

Attached Files
Membership is required for download. Create An Account First
File Type: zip OverTime.zip (16.2 KB, 589 views)

Hi deep, Herewith i have mentioned the simple format for the salary calcualation. Kindly check out with the attachment. reg, Dinesh K.T
20th June 2012 From India, Coimbatore

Attached Files
Membership is required for download. Create An Account First
File Type: xls SALARY CALCULATION..xls (19.5 KB, 1304 views)

Dear Mr.Karthik Nayudu....
u said "As per Acts employee is eligible for 12 CL, 12 SL 15 PL(after completing 140 working days) and 52 Weekly offs, 11 National Holidays Total : 102 Holidays in a year."...
pls elaborate this 12 CL12 SL 15 PL and pls let us knw which act reveals about all thse???
21st June 2012 From India, Visakhapatnam
Dinesh i appreciate your work, but in your sheet you have not mentioned how to calculate the OT.
And second thing in your sheet we have to put commutative values like salary for the month , pls add daily attendance in you sheet.
Regards
Vivek Netan
I am not wise but I am otherwise
21st June 2012 From United States, Anchorage
As per Factory Act 1948, Sec-59 Maximum 48 hrs allowed quarterly and OT is payable on Gross Salary (Double the ordinary rate) as below mwntined Formula - Gross Salary / 26/8 *2*OT Hours
21st June 2012 From India, Kota
Hi Seniors, In company Basic and Allowances only given. There is no DA. IS it is correct structure? Is allowances may added, while calculating overtime? Kindly advise. Regards, Ahamad
21st June 2012 From India, Erode
Srisa, Payment of overtime is done on twice the rate of wages, and calculation formula should be Salary/26/8*nos. of hrs*2 thanks & regards, from, sumit
21st June 2012 From India, Ghaziabad
OT Formula is : Double the Basic+DA, but not on Gross, but if anyone is paying on higher side, then not an issues. One can go maximum of 48 Hrs in a quarter. regards arun
22nd June 2012 From India, Delhi
Dear Sir Plz note down the formula to calculate the salary and ot Salary= Gross Salary/Monthly Days/Working Days=Earn Salary OT = Gross (Basic)/Monthly Days/8/OT Hrs = Earn ot amount
23rd June 2012 From India, Dehra Dun
hi,
hey guys with great good morning,
i need to help of all u guys regarding tht
labour contractors maintained legal register as per factory act.
so plz send me the list of all legal register which is maintained by labour contractors.
thanks & regards
dipal patel
9898291816
26th June 2012 From India, Ahmadabad
Hai Dipal

Below is the summary of documents which are required:

As per Rule 78 of CLRA Rules it provides for maintenance of the following :

Muster roll, wages registers, deduction register and overtime register.-(1) (a)

Every contractor shall in respect of each work on which he engages contract labour -

(1) maintain a muster roll and a register of wages in Form XVI and Form XVII, respectively:

Provided that combined Register of Wage-cum Muster Roll in Form XVIII

shall be maintained by the contractor where the wage period is a fortnight or less;

(II) maintain a Register of Deductions for damage or loss, Register of Fines and Register of Advances in Form XX, Form XXI and Form XXII, respectively;

(III) maintain a Register of Overtime in Form XXIII recording therein the number of hours of, and wages, paid for, overtime work, if any.

(b) Every contractor shall, where the wage period is one week or more issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages.

(c) Every contractor shall obtain the signature or thumb-impression of the worker concerned against the entries relating to him on the Register of Wages or Muster Roll-cum-Wages Register, as the case may be, and the entries shall be authenticated by the initials of the contractor or his authorized representative and shall also be duly certified by the authorized representative of the principal employer in the manner provided in rule 73.

(d) In respect of establishments which are governed by the Payment of Wages Act, 1936 (4 of 1936), and the rules made there under, or Minimum Wages Act, 1948 or the rules made there under, the following registers and records required to be maintained by a contractor as employer under those Acts and the rules

made there under shall be deemed to be register and records to be maintained by the contractor under these rules, namely:

(a) Muster roll;

(b) register of wages;

(c) register of deductions;

(d) register of overtime;

(e) register of fines;

(f) register of advances;

(9) wage slip.

(3) Notwithstanding anything contained in these rules, where a combined or alternative form is sought to be used by the contractor to avoid duplication of work for compliance with the provisions of any other Act or the rules framed there under or any other laws or regulation where mechanized pay rolls are introduced for better administration, alternative suitable form or forms in lieu of any of the forms prescribed under these rules, may be used with the previous approval of the Chief Labour Commissioner (Central).

Technically when using mechanized Payroll previous approval of the Chief Labour Commissioner needs to be obtained.

Regards

Vivek Netan
26th June 2012 From United States, Anchorage
Hello,
I am Assistant HR at one of manufacturing company & when we calculate OT as following method
Gross salary *12/365= Per day salary
Per day/8 = Per hour salary
(Per hour salary *2 (double)) * number of Hours extra worked = Total OT compensation
26th June 2012 From India, Pune
Dear Deepa, Actually OT Calculation Basic + DA / 26 /8 =1 Hour * 2 (double) Regards, SuresH.R
27th June 2012 From India, Madras
Hi Srisa,
Thank you for sharing the calculation of O.T. but i have a difficulty.
in short if he was working for my company for 24 days instead of 26 days but he done O.T. around 8 hours, how should i pay him???? Should i pay him O.T. charges for 8 hrs + his working 24 days or should i pay him for 25 working days.
30th June 2012 From India, New Delhi
Greetings frnds......!!!!!!! Deepa plz find the attatched work book it will help you....
2nd July 2012 From India, Gurgaon

Attached Files
Membership is required for download. Create An Account First
File Type: zip ot calculation.zip (550.3 KB, 180 views)

i have over 1 and half years experience in hr as recruiter and also in salary departmnent should i do a Hr degree on can in find a good job on the basis of experience
8th July 2012 From India, Khanna
gud eve. please provide me the details of leaves. how many types of leaves and how they are useful for the employees. regards, maa santoshi
9th July 2012 From India, Mumbai

Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™