Entire Organisational Matters
Sr. Manager - Hr & Admin
District Program Manager
The OT has to be calculated as per their extra hours which is beyond 8 hours of their work. Like if they work for 10 hours then you have pay OT for 02 hours.
The formula for calculation is to be done on Gross not on basic as per factory act, whereas many co's are paying on basic or Basic+DA. As per minimum wages the OT has to be calculated on Basic+VDA or on Gross.
=Gross /240*2*No. of hours worked.
As per your above details here comes (Basic+ DA) 8000/240 x 2 x no. of hours worked = will be the amount.
Hope this will clear your doubts.
29th September 2012 From India, Secunderabad
29th September 2012 From India, Sirohi
To pay the overtime always follow the rules of payment and wages act here I am giving an example for your help
payment of an employee as follows .
D A 3000/-
rate = [(11000/26)8]X 2
for more details you can contact me at 08894128690
29th September 2012 From India, Shimla
29th September 2012 From India, Chennai
D A 3000/-
rate = [(8000/208]X 2 = 76.92/-
BASIC+DA/standard working hours*overtime hours*2
Note : 208 is a standard working hour for the month.
Thanks & Regards
30th September 2012 From India, Bangalore
Now the salary portion basic+DA+VDA= total salary /working hours for the month = ot rate
1st October 2012 From India, Calcutta
. CHAPTER VI, Working Hours of Adults .
59. Extra wages for overtime
(1) Where a worker works in a factory for more than nine hours in any day or for more than forty-eight 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.
92[(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 food grains and other articles, as the worker for the time being entitled to, but does not include a bonus and wages for overtime work.
(3) Where any workers in a factory are paid on a piece-rate basis, the time-rate shall be deemed to be equivalent to the daily average of their full-time earnings for the days on which they actually worked on the same or identical jo
1st October 2012 From India, Bangalore