Most employers take 26 working days since 4 Sundays are in a month. So they divide the monthly salary by 26 to get daily salary. Then that is divided by 8 hours to get hourly rate. Overtime is to be paid at double of this rate
13th June 2017 From India, Mumbai
Juxtaposing the Minimum Wages Act,1948 and the Factories Act,1948 regarding the issue of overtime payment, you can find the saving clause under sub section (2) of section 14 of the Minimum Wages Act,1948 prohibiting the prejudicial operation of the provisions of section 14 wherever sec.59 of the Factories Act,1948 is applicable.
Coming to the observation of Sebastian, it is not correct to take into account the components of basic and D.A only in computing the over time rate of wages in view of the meaning assigned to the term "ordinary rate of wages" u/s 59 (1) of the Factories Act,1948.
4th January 2019 From India, Salem