Industrial Relations And Labour Laws
Bhartiya Akhil
+1 Other

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Dear Sir/Madam, I have query that, How many Month Days would be taken in calculating OT Rate as per Factory Act. Is it 26? or Is it 30?
For Example Basic and DA of Any Employee is 15000/- then What is the OT Rate ( 1 hrs. Rate of Salary) of Employee.
Please do the needful.

For calculating overtime wages, you have to take the average rate of wages. Avrage rate of earnings is the average of he earnings for the days he has "actually worked". A such it should be monthly wages divided by 26 and then divided by 8.
From India, Kannur
Dear Madhu.T.K Sir,
What I feel, under the Factory Act, for calculation of overtime daily average earnings of the days actually worked by the workman is applicable for piece rate only.
My understanding is hourly rate of overtime is to be calculated by dividing by 8 to the daily rate if the workman is daily rated.
In case of monthly rated workman, first we have to convert the monthly rate in to daily dividing by number of days in a month (generally). So converted daily rate is to be calculated in to hourly rate dividing by 8.
However in some States, monthly rate is converted in to daily rate dividing by 26 as per the notification of that State under the Minimum Wage Act.
I am posting this only in view to correct myself.

From India, Mumbai
In respect of monthly paid workers, the system of dividing the gross salary by 30 is also in practice. But when it comes to employees who are eligible for overtime wages it is always fine if you take the same 'actually worked' principle as applied for piece rated employees. Again, average wages as per Minimum Wages Act is monthly wages divided by 26 and not 30.
From India, Kannur
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