Dear All, Could you all help in calculating overtime payment for staff especially in the lower cadres. Do we deduct PF, ESI and Ptax from overtime payment? Please explain. Regards, Preenitha
From India, Hyderabad
General Manager-hr
Labour Laws & Ir
Suresh Ramalingam
Legal, Hr & Compliance
Hr ( Generalist)
Hr Professional
Gm (hr)
Asstt. Manager-hr
Nishant Vishwakarma
Hr Professional
Hr Professional

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.

Overtime Caculation Gross Salary = 3510 Overtime Hrs = 75 Calculation = 3510/30/8*75*2 Gross Salary/Month/Day Hrs.*OT Hrs*2 If pay double
From India, Delhi

on the same matter in different form, i have posted a mail on 02 august 2007 and even till today no suitable reply is being obtained and suggestions which you have received also is contradictory.
as a practitioner, for the permanent employee we divide the monthly basic by 30 and on the basis of the same we enumerate the wage and for contractor employee and governed by minimum wage, we divide it by 26.
hope this will suffice to your requirement.
with thanks,
asitabha sanyal

From India, Delhi

one more thing i want to add that overtime wages is subjected to the deduction of esi and not the pf. i have no idea about the ptax. with thanks, asitabha sanyal
From India, Delhi
Sanjay D Sharma

Overtime is separate for the company's employee and contractor employee's
Company employee's overtime calculation:
((Basic+Da)/No. of day's of the particular month/8)*No. of hrs overtime*2 =OT rate.
Contractor employee's overtime calculation"

((Basic+DA)/26/8) * No. of hrs overtime * 2 = Overtime Rate

From India, Ghaziabad
Sanjay D Sharma

Hi Preenitha,
Overtime for the staff especially in the lower cadres calculation:
((Basic +DA)/No. of days by which the salary is prepared/Working hrs of the working day. i.e 8 hrs)* No. of hrs Overtime done*2 = Overtime amount to be paid.
Overtime attracts ESI. But on overtime PF is not applicable.
Regarding the Ptax I am not aware.

From India, Ghaziabad
Sanjay D Sharma

Hi everybody there,
Overtime calculation:
For the regular employee of the company:
((Basic+Da)/No. of days of the particular month/No. of working hours of shift)*2*No. of Hrs of OT done=
Overtime amount for that employee. e.i ((2500+461)/31/8)*2*16 hrs=Rs. 395/-
For the contractor employee:
((Basic+Da)/26 days that is standard/No. of working hours of shift)*2*No. of Hrs of OT done=
Overtime amount for that employee. e.i ((2500)/26/8)*2*16 hrs=Rs. 385/-
Please note Overtime attracts ESI only, not PF but regarding PTax I am not aware.
I think I have made myself clear to your doubt.

From India, Ghaziabad

Mr. PBS Kumar, Why PF will attract the over time payment ? Give the reason, pls Purshottam Saini
From India, Calcutta
nishant vishwakarma

sir Plz give me advice for calculaion of ot .Can we calculate ot for monthly or weekly with same Farmula like division by 26 . what is correct as per the Law. Nishant
From India, Ranchi
Suresh Ramalingam

There is lot of queries on OT to be considered for statutory deductions, i have given the reasons below.
ESI - OT has been included as wages by the provision of the Act.
PF - OT is not included as wages by the provisions of the Act.
PT - If the Gross wages cross the prescribed ceiling then PT has to be deducted. (Specific to State laws)
Suresh Ramalingam

From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server