Preenitha
1

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
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Pbskumar2006
General Manager-hr
R.N.Khola
Labour Laws & Ir
Suresh Ramalingam
Legal, Hr & Compliance
Ramnathmsw1976
Hr ( Generalist)
Asitabha
Hr Professional
Malikjs
Gm (hr)
Purshottamsaini
Asstt. Manager-hr
Nishant Vishwakarma
Hr Professional
Preenitha
Hr Professional

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amanb17
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
asitabha
2

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
asitabha
2

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
1

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
1

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.
Sanjay.

From India, Ghaziabad
Sanjay D Sharma
1

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
purshottamsaini
15

Mr. PBS Kumar, Why PF will attract the over time payment ? Give the reason, pls Purshottam Saini
From India, Calcutta
nishant vishwakarma
3

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
27

Team,
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)
Rgds,
Suresh Ramalingam
Compliance

From India, Mumbai

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