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As per Sec-59 of Factory Act Sec(1) Where a worker works in a factory more than nine hours in any day or for more than forty-eight hours in a week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.

Query: Ordinary wages means only basic wages or Gross wages

From India, Bhubaneswar

Thanks, sir, but we have short manpower. As a result overtime generation is more, and due to this management wants to control leave to restrict overtime.
From India, Vadodara

Hi Anantha,
The definition of "ordinary rate of wages" in the context of labour laws, such as the Factory Act, can vary by jurisdiction. However, in many cases, it refers to the basic wages or the basic rate of pay. Basic wages typically exclude additional components like bonuses, allowances, overtime pay, or any other special remuneration.

It's crucial to consult the specific labour laws and regulations applicable in your region, as definitions and interpretations can differ. In some jurisdictions, the ordinary rate of wages might include a broader range of components, so it's important to refer to the l labour laws to determine the exact meaning in your context.


From India, Bangalore

Overtime allowance should be calculated on that salary which is paid if the employee works on a day. It should be the same salary which is considered as the base for deducting pay for absence from work or Loss of Pay. If there is elements like house rent allowance or conveyance allowance which are paid for certain purposes only in the salary, the same can be excluded for calculation of overtime wages because for doing overtime work, the employee will not pay more rent or the worker will not incur additional travelling cost. Therefore, the practice is to calculate overtime wages on Basic pay and the Dearness allowances only.
From India, Kannur
Student of life
@Madhu T K

Thanks for details.

I have one query, as now days many factories have 12 hr shift as normal shift.
in this case,
1.payment should be made on ordinary wages without overtime for 12 hr
2.payment should be 9 hr regular and +3 hr OT
Please guide

From India, Mumbai

Overtime wages should be paid for the hours exceeding 8 hours and not 8 hours. What the law states is overtime wages should be paid for working beyond 9 hours in a single day OR 48 hours in a week. Every hour exceeding 48 hours should be paid at double the rate of wages. Therefore, if an employee who has done overtime on a day, say 10 hours, remains absent (not leave with pay) then he may lose his overtime entitlement because he should have worked less than 48 hours in that week.

Again, when you engage workmen for 12 hours every day, there is a non compliance since the total hours including the overtime hours in a week should not exceed 60 hours or 75 hours in a quarter. If you have a shift of 12 hours with 4 hours overtime at double the rate, then also the authorities can interfere. If you have work which requires 12 hours every day to accomplish, yu should engage additional labour and cannot get it done with the existing workers even if tthey are ready to do overtime.

From India, Kannur
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