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How to calculated workers & staffs Loss of Pay(LOP)salary details & OverTime calculation Please help in this regards
Dear Mukesh,

LOP is nothing but Leave without pay which we can also defined as an absence day for unauthorized leave.

& It can be calculated on Total Gross / No of total days in a month* Total number of hrs ( i,e 8 hrs = 1 Day OT to be considered)

= LOP for a day (in Rupees)

For Overtime Calculation:

Here I would like to recommend you to refer the clause 63 of Wages for Overtime Work- under Shops & Establishment Act which status as follows (the copy of provision for payment of OT under S&E Act enclosed for your ready reference):

Wages for overtime work.- 6[ Where an employee in any establishment to which this Act applies is required to work in excess of the limit of hours of work, he shall be entitled, in respect of the overtime work, wages at the rate of twice his ordinary rate of wages.

Explanation.-For the purposes of this section the expression "limit of hours of work" shall mean-

(a) in the case of employees in shops and commercial establishments, nine" hours in any day and forty-eight hours in any week;

(b) in the case of employees in residential hotels, restaurants, eating houses, theatres or other places of public amusement or entertainment, nine hours in any day; and

(c) in the case of employees in any other establishment, such hours as may be prescribed. ]6

42[ Provided that, the maximum limit for working overtime shall not exceed three hours and the employer may, for the purpose of the work beyond the said overtime hours, engage additional number of employees.]42

Here you need to consider the definition of wages in the definition column of section 2 under Bombay shops & Establishment Act which states to refer the definition of wages in The payment of Wages Act. Find below the wording mentioned in the legislation and the copy of definition of wages under S&E Act for your further reference.

"Wages" means wages as defined in the Payment of Wages Act, 1936 (IV of 1936);

Since it is been mentioned in the Bombay S&E Act, we are referring definition in the Payment of wages act, where the attached file of definition of wages under Payment of Wages Act confirms you that all the remuneration except any bonus, gratuity, any contribution paid by the employer to any pension or provident fund, value of any house-accommodation, water, medical attendance or any other amenity.

Calculation for Overtime= Gross * 2

I hope I have been clarified all your queries related to LOP & Overtime calculations.



Attached Files
File Type: pdf Defination_of_Wages_under_Payment_of_Wages_Act.pdf (208.9 KB, 56 views)
File Type: pdf Defination_of_Wages_under_S_E_Act_1948.pdf (140.6 KB, 34 views)
File Type: pdf Provision_for_Payment_of_OT_under_S_E_Act.pdf (159.6 KB, 34 views)

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