Dear Friends,
Can you please guide me in how to calculate normal overtime hour factor. What I know is
Basic salary X 12Months / 365Days = 1 day avg Basic Salary
1 day avg basic salary / 8hrs = 1 hr avg basic salary
1 hr avg basic salary X 1.5Factor = 1 hr normal overtime cost.
Please tell me if this is the actual true formula if not please guide me for the best one.
Thanks & Regards,
Khaiser Ali Shah
30th December 2007 From Saudi Arabia, Riyadh

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Come on guys no replies, please reply or send some suggestions. Just try to give me the way you calculate the payroll for your company.
30th December 2007 From Saudi Arabia, Riyadh
Dear Mr Shah,
As per my opinion you can calculate the overtime amt by fixing a certain amt for per hour of extra work & multiply the amt with no. hours of extra work performed which would ultimately give you the Overtime amt earned by an employee. For ex XYZ works for 5hrs extra & let us suppose that we have fixed an amt of 100 rupees per hour for the overtime work so the amt that XYZ would be eligible would be 100*5 = 500Rs.
HR Professional
31st December 2007 From India, Gurgaon
Overtime calculation
Per day salary Basic salary = (pertaining to the no of days in a month)
= Basic/31 = Salary per day
Per day basic / 8 = per hour salary
Overtime = 1.25*per hour salary*no.of overtime hours worked.
31st December 2007 From Australia, Adelaide
Thanks for reply Liza, I am looking for further suggestions so, come on friends give me the method of your overtime calculation. Once againg thanks to Liza, Khaiser
31st December 2007 From Saudi Arabia, Riyadh
Overtime calculation varies from country to country depending on the factories act. In India overtime is given as double the normal rate(Basic+DA) for the extra durt hours. If it is 31 days duty then one hour rate is found as A/31/8 and if it is 26 days work then one hour rate is found as A/26/8 and so on.
1st January 2008 From United States, Cambridge
Dear Murali, That’s OK but it differs from company to company so please send me the one your company follows. Regards
4th January 2008 From Saudi Arabia, Riyadh
hi all
Mr.Tiwari is right OT should be paid double the wages ;
when calculating hourly wage we should not take 9,10 hours we should only take 8 hours because in Factories act it has been stated that working hours should be 8 hours including all intervals.
And importantly we should not allow an employee to work overtime above 48 hours in 3 months
5th January 2008 From India, Bangalore
one company provide to their employee double overtime on the base of gross salary.why they are taking gross for ot calculation.like
Gross salary-5000
working hours-2
=161 one day wage
=20 per hour
=80 rupees ot
14th June 2010 From India, New Delhi
Dear Khaiser, The calculation you have stated s true,but plz look in to the actual(1.25 or 1.5) placed in saudi market Regards HR_HYD
14th June 2010 From India, Hyderabad

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