Jeevarathnam
Sr. Manager Hr/admin
Subbarao.nv
Presently Working As Dy Manager Hr &
Pganeswararao
Dy. General Manager - Hr & Admn.
Hr@bmcgroup.in
Hr Executive
Anandakg
Service
Hackeranil
Senior Hr, Hyderabad
+4 Others

How to claculate OverTime.The information given by interviewer is mentioned below:
If X employee getting
Basic -10,000
HRA- 6,000
Conveyance-800
Med- 1250
And earned gross salary is 20,000.and the X has done 49Hrs OT.
what is the payment done by employer to the employee for 49Hrs Overtime ?
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Hi
Usually OT is calculated on the basic wages on hourly wages.
for example Basic is 10,000/-
Per day wage is 10,000/25 = 400/-
Wages / hour is 400/8 = Rs. 50
OT is 2times on the wages so OT wage per hour is Rs 100
for 49Hrs OT is rs.4900/-
Hi Sujayda,
The overtime is to be calculated separately on the basis :
Total Monthly Salary/no. of days in a month/ 8 hours (or the daily work hours)*2*no. of OT hours worked.
So it will be 20,000/31/8*2*49 = 7,903/-
The same amount is to be added separately in your payroll statement.
NOTE : Some companies calculate OT on Basic+DA, and some calculate on Total Gross Salary.
Seniors, kindly correct if I have gone wrong anywhere.
Hi Jeevarathnam, Wanted to clarify, we do not include Sundays in the calculation of no. of days in a month ?
Hi All , I m confused with two answer.plz tell me which one is correct.whether I should go with Mr.Jeevarathnam answer or Miss/Mrs. Shamin S. answer.
Hi Sujayda,
As mentioned above there are some companies who calculate OT on Basic+DA and some companies who calculate OT on Total Monthly Gross salary.
The formula mentioned below :
1) Basic+DA/no. of days in the month/8hrs (daily work hours)*2*no.of hours worked.
2) Total Monthly Gross/no. of days in a month/8hrs (or daily work hours)*2*no.of hours worked.
Both the cases, formula remains the same. The logic is : normally if you get paid Re. 10 per hour, den working for 1 hr OT - you'l be paid Rs. 20.(twice the rate)
Only we require the confirmation on :
a) whether it is Basic+DA or Monthly Gross
b) and whether the days of a month should be excluding sundays.
Seniors we require your kind guidance on the same.
Besides Sujayda, hope your confusion is cleared to a certain extent atleast.
Hi Shamim As there are 4-5 week offs in a month generally we will consider 25days as working days and even the salaries are calculated for 25 days per month.
Take the Basic HRA and Conveyance and total it.... ( You should not take it Medical allowance for OT)
Now add the three divide it by 30 days and you get it for one day salary i.e., for 8 hours..... this figures you should divide by 8 and you get one hour salary and this figure multiple with 49 hours which is the OT for 49 hours...
GOT IT ???
- regards - venkat - bangalore -
OVER TIME PAYMENTS UNDER DEPARTMENTAL RULES (DOT)

In the case of Day Workers, the overtime is paid at the rate of Basic Pay + Dearness Allowances + City Compensatory Allowance + Personal Pay + Special Pay + Pension to the extent as applicable, divided by 200 for each hour of overtime worked. The hourly rate is the same for the work done both in Day & Night Shift.

In the case of Piece Workers, again there are two sets of rules for DOT. It is calculated @ Basic Pay (alone)/200 per hour in the day shift. For working in the night shift, an additional element known as Night Shift Bonus is also added. This is calculated for half an hour for each hour of overtime worked under departmental rules @ (Basic Pay + Dearness Allowances + City Compensatory Allowance)/200.

OVER TIME PAYMENTS UNDER THE FACTORIES ACT, 1948

For work done, beyond 9 hrs. a day or 48 hrs a week, there are two sets of rules –

one for the Day Worker and the other for the Piece Worker.

Day Worker: Hourly rate of payment which are applicable equally in the day shift as well

in the night shift is calculated at the rate = twice the pay & allowances/200.

Piece Worker: Hourly rate of payment in the day shift is calculated at the rate = twice the

pay & allowances/200. In the night shift, the same becomes = (twice the pay + pay/4 +

allowances)/200.

Tanaya Hoigekar

Sr.Manager HR & Admin
Dear Friends,
Please note that ot wages means: Basic wages plus such allowances, including the cash equivalent of the accuring through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work. Days calcuation: 26 or 27 or 25 (Excluding Sundays)
regards
abubakkar

Dear All
Pls refer Factory act 1948 ( Sec.59) wherein it is mentioned that all allownaces are to considered for calcualtion of Overtime.And it should be paid at double rate.However in shops & Establishment act the defination of Overtime is not given.
Anand
Hii,
You can calculate OT like this.
Case1:
If you work for 5 days in a week and 8 hours for one day.
suppose Basic is INR 6000.
Logic is 21 working days for month and if you work for 8 hrs for one day.
Then (Basic)/21*8=Basic/168. which is for one hour like this you can calculate .
6000/168=35.71 Rupees for one hour.
Case2:
if you work for 6 days in a week and 8 hours for one day.
6000/26*8=6000/208=28.84 Rupees for one hour.
thanks and regards,
Anil
Overtime is payable only on Basic + DA & VDA. If DA & VDA are not part of salary forget about them. All other allowances are not applicable.
The calculation is very simple = basic / 208 (one hour wage) x 2 (payable double hour) x actual OT hours i.e 49 hours. Hope you can remember this 208, it is a shortcut, instead of doing basic / 26 days / 8 hours.
Regards===S Rao / 09849562900 / Hyderabad
Good after noon, This is Ganesh from Hyderabad. Yes, Sh. Jeevarathnam is given correct answer. The OT will be calculated on hourly basis and double the payment, which is statutory. Rgds Ganesh
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