Hi How to calculate double pay on national holidays in India. If employee annual gross salary is 7,96,673 /- Please help with formula. Regards,
From India
From India
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That I know but when you post such queries, it should be monthly salary and not the annual salary or the CTC which matters for us.
Double the rate means overtime wages and nothing else. You can follow the same formula which is applied in calculating overtime wages for paying wages for holiday working. If you pay for 30 days, the holidays would automatically be included in that 30 days. In such circumstances, you have to add one day more as overtime wages.
Normally basic wages and DA will be considered for overtime wages. But if you have components like daily allowance, conveyance allowance which are paid on attendance, that should also be paid when an employee is called to work on hlidays.
From India, Kannur
Double the rate means overtime wages and nothing else. You can follow the same formula which is applied in calculating overtime wages for paying wages for holiday working. If you pay for 30 days, the holidays would automatically be included in that 30 days. In such circumstances, you have to add one day more as overtime wages.
Normally basic wages and DA will be considered for overtime wages. But if you have components like daily allowance, conveyance allowance which are paid on attendance, that should also be paid when an employee is called to work on hlidays.
From India, Kannur
Is this correct formula
Monthly Gross Salary *12(No. of calendar months) / 365 days / 8 (Total working hours per day) * No of hours worked
For example- Lets take Gross Salary as 20000/- of the staff who has worked for 5 hours on 15th August (Independence Day) then the above formula will work as below –
20000*12/ 365 / 8 * 5= Holiday Pay (Double Pay)
From India
Monthly Gross Salary *12(No. of calendar months) / 365 days / 8 (Total working hours per day) * No of hours worked
For example- Lets take Gross Salary as 20000/- of the staff who has worked for 5 hours on 15th August (Independence Day) then the above formula will work as below –
20000*12/ 365 / 8 * 5= Holiday Pay (Double Pay)
From India
Kalpana ji,
Aap aisi kalpana kijiye ki Karmachari ka masik vetan 28000 hai. Agar aap unako farvari mahine me 5 ghanteka adhik kamka vetan dena chahogi to Nimna likhit prayog ka istemal kijiye.
Prati maah vetan 28000/28 no. of days of the month=1000 prati din vetan/8=125 prati ghanta vetan.
Ab jitane bhi ghante adhik kam ho use Dwigunit kijiye aur adhik vetan ka mulya nikaliye.
Udaharan 125*4*2=1000 (4 ghante ka adhik vetan = 1000)
This is how overtime is calculated. If you want to keep it simple, divide the monthly salary by 30 to get the per-day salary, then multiply the number of extra hours (OT) by double and divide by 8.
If you only pay minimum wage to workers, the divisor should be 26 rather than 30 or 31.
Regards,
Suresh
From India, Thane
Aap aisi kalpana kijiye ki Karmachari ka masik vetan 28000 hai. Agar aap unako farvari mahine me 5 ghanteka adhik kamka vetan dena chahogi to Nimna likhit prayog ka istemal kijiye.
Prati maah vetan 28000/28 no. of days of the month=1000 prati din vetan/8=125 prati ghanta vetan.
Ab jitane bhi ghante adhik kam ho use Dwigunit kijiye aur adhik vetan ka mulya nikaliye.
Udaharan 125*4*2=1000 (4 ghante ka adhik vetan = 1000)
This is how overtime is calculated. If you want to keep it simple, divide the monthly salary by 30 to get the per-day salary, then multiply the number of extra hours (OT) by double and divide by 8.
If you only pay minimum wage to workers, the divisor should be 26 rather than 30 or 31.
Regards,
Suresh
From India, Thane
The formula is correct but why should you take annual salary? You can take monthly salary, ie, 20000, divide it by 30 and then divide it by 8 to get hourly rate.
When you pay salary you will be paying 30 days salary to all including those who have availed the holidays. Right? Then 30 days' salary means and include one day holiday pay. Then for those who work on holiday, when you have to pay double the rate, single rate is already given and therefore, you can pay additional amount at single rate. Since the employee who has been called to work on a holiday will be getting a compensatory holiday also, this will satisfy the legal obligations.
From India, Kannur
When you pay salary you will be paying 30 days salary to all including those who have availed the holidays. Right? Then 30 days' salary means and include one day holiday pay. Then for those who work on holiday, when you have to pay double the rate, single rate is already given and therefore, you can pay additional amount at single rate. Since the employee who has been called to work on a holiday will be getting a compensatory holiday also, this will satisfy the legal obligations.
From India, Kannur
Dear Suresh Sir,
If any member of our team is not able to understand the issue properly then you can give top up reply for better understanding.
You are a valued contributing member of Cite-HR therefore i would request you to pls maintain basic courtesy.
If any member of our team is not able to understand the issue properly then you can give top up reply for better understanding.
You are a valued contributing member of Cite-HR therefore i would request you to pls maintain basic courtesy.
Dear Alok Ji,
I simply simplified the calculation method. I have no other intention because our learned member, Mr. Madhu T K, has already elaborated and explained the case in a simple manner.
I apologise if I am incorrect.
Regards,
Suresh
From India, Thane
I simply simplified the calculation method. I have no other intention because our learned member, Mr. Madhu T K, has already elaborated and explained the case in a simple manner.
I apologise if I am incorrect.
Regards,
Suresh
From India, Thane
In this case the question is how to arrive daily wages from monthly wages. There are organizations who are determining daily wages by dividing 30 of the monthly wages irrespective of months, there are others who are determining by dividing monthly wages by number of days of the particular month and innovative formula like monthly gross x 12 /365. To my opinion in the last case it takes care about different days in the months effect. So far my knowledge goes, there is no law/ rule to guide the calculation. It depends on organization's policy.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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