Labour Laws & Ir
Legal, Hr & Compliance
Hr ( Generalist)
Sanjay D Sharma
Mahesh O M
Hr Payroll Executive
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.
16th August 2007 From India, Delhi
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
25th June 2008 From India, Ghaziabad
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.
12th July 2008 From India, Ghaziabad
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.
6th August 2008 From India, Ghaziabad
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)
13th August 2008 From India, Mumbai
you can calculate overtime like this total salary / 30 / 8 / no of ot hrs X 2.
Basically as per rule we hv to pay ot at double rate and divided by 26. but normally most of the factories pay at single rate. So u can also pay by single rate and divided by 30.
14th August 2008 From India, Delhi
Plz clearify me if i m wrong with priscribed rule or Act.
7th March 2009 From India, Bangalore
I have also gone through all posts on calculation of overtime but most of my friends
has given reply as what they are doing in their establisments.We are here to give reply legally , not on what we are following in our establishment.Even one of our friend has given different calculation for company employees ,as well as contractor employees, as law for calculation of OT is different for both.
dear total salary is to be divded by 26 in both cases as mr ramnath said because one day wages we get by dividing from 26 not by dividing from 30/31.
OT WILL not attract contribution towards PF.
J S MALIK
7th March 2009 From India, Delhi
Bcoz going through all this discussion i also got confused... but plz share your views reg the ordinary wage as per the govt act? as i felt it is gross montly wages...which include (Basic+Da+HRA+conv+travl Allow+Med Rem+others if any)
24th October 2009 From India, Bangalore
OT amount calculation is made in accordance with the applicability of the Act. First we are to decide which of the Act is applicable to your establishment for grant OT payment such as State Shops & Establishment Act, Minimum Wages Act, Factories Act, 1948 etc. Therefore go through the applicability provisions under different Acts & see which is applicable in your case & then see OT payment provisions in that Act.
16th October 2010 From India, Delhi