Industrial Relations And Labour Laws
Executive - Payroll
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hello there, staff has been doing overtime on December 2007, will be paid on January 2008, but theres new salary structure for January 2008. the basic salary i should follow is on January 08 or dec 07? please advice thank you
From Malaysia, Klang
Consider the period they were on over time and pay accordingly as applicable in that month.
From India, Gurgaon
Overtime wages is calculated on the basis of the wages prevailing at the time of overtime. However, if the new salary introduced has retrospective effect, say with effect from December 2007, then an employee is eligible for back wages and that should include the OT wages and, therefore, in such cases OT shall also be calculated at the revised rates. On the other hand, if the revision has effect from Jan 08 only, then OT for Dec 07 will be calculated at the pre revised wage rate only. Remember, this is applicable only for OT and for leave encashment, payment of Gratuity and Retrenchment benefits the rate applicable at the time of such leave encashment or payment of gratuity/ compensation will be taken as the base. Regards, Madhu.T.K
From India, Kannur
Dear Mr. Madhu T. K., Would you please elaborate little on the calculation of OT Payment and the basis of it like either basic salry or Gross as per statutory norms and as per Industrial practice. Pradeep -----------
From Netherlands
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