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I have one employee in maintenance, his salary is 9500 after deducting PF ESIC he gets 8726 on hand, if he do overtime on which rate i shall pay him overtime? on 9500 or 8726 and what would be the calculation.
From India, Bhavnagar
Dear Kartik Bhayani,
Greetings from SARATHI !
Considering the monthly salary of the employee Rs. 9500 /-, his per day salary would be worked out Rs. 365 /- (Monthly Salary / 26)
and per hour salary would be appx. Rs. 50 /-. (Salary per Day / 8 Hrs.)
Now as per Factories Act clause 59, 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.
Therefore, the employee would get Rs. 50 x 2 = Rs. 100 / per hour beyond nine hours of work or more than 48 hrs. in the week.
In short, OT would be calculated on the Original Basic salary.
Regards,
SARATHI

From India, Mumbai
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