How to calculate the OT payment our salary structure is Basic, HRA and Conveyance? - CiteHR
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Dear All! How to calculate the OT payment our salary structure is Basic,HRA and Conveyance
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.

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.

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
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

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.

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.

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?
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.
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.

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