Please find attached the Salary Slip format for your reference.
I would like to inquire whether I can include overtime payment in the salary slip, considering that I have already accounted for it under the shift allowance.
Your prompt response would be highly appreciated.
Thanks & Regards,
Sujata
From India, Pune
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10I would like to inquire whether I can include overtime payment in the salary slip, considering that I have already accounted for it under the shift allowance.
Your prompt response would be highly appreciated.
Thanks & Regards,
Sujata
From India, Pune
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Dear Sir, Awaiting your reply as I have to issue Salary Slip. In this regards I just would like to know can I add Overtime payment in the attached salary slip or what. Please reply. Regards Sujata
From India, Pune
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From India, Pune
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You can certainly add the Overtime component in the payslip. But remember, if you are covered under the Factories Act or Shop & Establishment Act, you have to comply with the provisions contained therein. You have to make necessary changes in the computerized payslip as the Overtime component is included in the wages definition under the ESI Act, 1948, whereas no contributions are required to be deducted under the EPF & Misc Provisions Act, 1952.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Overtime as a Shift Allowance: A Legal Risk
Showing overtime as a shift allowance is a potential minefield that you are creating. Legally, this amounts to not paying overtime. At any point in time, an employee or ex-employee can file a complaint asking for overtime (there must be records of the same). In such a case, you will have to pay double-rate overtime for the last 3 years and interest at 18%, plus a penalty. The fact that you paid a shift allowance is likely to be ignored by the court as there is nothing to show it was overtime. Overtime must be clearly stated (as per the Minimum Wages Act and Payment of Wages Act).
From India, Mumbai
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Showing overtime as a shift allowance is a potential minefield that you are creating. Legally, this amounts to not paying overtime. At any point in time, an employee or ex-employee can file a complaint asking for overtime (there must be records of the same). In such a case, you will have to pay double-rate overtime for the last 3 years and interest at 18%, plus a penalty. The fact that you paid a shift allowance is likely to be ignored by the court as there is nothing to show it was overtime. Overtime must be clearly stated (as per the Minimum Wages Act and Payment of Wages Act).
From India, Mumbai
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I read your comments, but I would like to know if I can show overtime payment as another allowance or if shift allowance is acceptable. We want to avoid any legal issues in the future. Please suggest.
Regards.
From India, Pune
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Regards.
From India, Pune
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I read your comments. But I would like to know, can I show overtime payment as another allowance, or is shift allowance okay? As in the future, we don't want to be involved in any legal matter. Please suggest.
Till it is tested in court (where it depends on circumstances and how the lawyers argue it), we will not know... :)
From legal best practices, it is dangerous to call overtime by any name other than overtime. It can cause a problem at a later stage. So talk to your management and get the name changed back to overtime. Do not call it any other allowance.
Regards
From India, Mumbai
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Till it is tested in court (where it depends on circumstances and how the lawyers argue it), we will not know... :)
From legal best practices, it is dangerous to call overtime by any name other than overtime. It can cause a problem at a later stage. So talk to your management and get the name changed back to overtime. Do not call it any other allowance.
Regards
From India, Mumbai
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Dear Sir,
The above conversation is very informative for the overtime. As we are into hospital and overtime is the major concern in case monthly salary generation. Still there are some doubts…
1. as overtime is not fixed it depends on the situation thus... still ESI applicable on overtime payment
2. can it be added in salary slip as we are going for HR module software
3. if yes then under which term
Request to please guide me and would appreciate your response asap.
Thank You
From India, New Delhi
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The above conversation is very informative for the overtime. As we are into hospital and overtime is the major concern in case monthly salary generation. Still there are some doubts…
1. as overtime is not fixed it depends on the situation thus... still ESI applicable on overtime payment
2. can it be added in salary slip as we are going for HR module software
3. if yes then under which term
Request to please guide me and would appreciate your response asap.
Thank You
From India, New Delhi
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Salary slip format.xls