How Do You Calculate Overtime Pay Under ESIC-PF for a Rs 4000 Salary?

Dear All,

Can anyone tell me about the calculation for overtime if you are covered by the ESIC-PF Act? I heard that you have to deduct ESIC on the overtime amount. What will be the rate of overtime if an employee is getting a Rs 4000/month salary and worked for 25 hours as overtime in a month?

Is overtime supposed to be 1.5 or 2 times the normal working hours?

Awaiting your prompt reply.

Thanks and Regards,
Vikas Kumar
9968008206

Dear,

Overtime rates depend on the company; it should be 1.5 or 2 times the normal working hours. There will be a deduction of ESI on the overtime amount at 1.75%.

Regards,
Amit

Dear Friend,

Yes, it depends on the company; normally, most companies consider 2 times because it will be like double pay for overtime that you work. When it comes to ESI, it is the same 1.75% of the total salary, which also includes your overtime.

Visit www.esic.nic.in and see if you can get any details apart from what we have given, and if so, do share the same with us.

Hopefully, this should help you out to get your problem solved.

Regards, Amith R.

Under Section 59 of the Factories Act, 1948, Overtime is calculated twice the rate of his/her ordinary wages irrespective of whether you are covered under ESI, PF Act or not. The narration from the Factories Act is as follows:

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

Dear All,

Can anyone tell me about the calculation for Overtime if you are covered in ESIC-PF Act? I heard that you have to deduct ESIC on the overtime amount. What will be the rate of overtime if an employee is getting Rs4000/month salary and he/she worked for 25 hrs as Overtime in a month. Is overtime supposed to be 1.5 or 2 times the normal working hours?

Awaiting your prompt reply.

Thanks and Regards,
Vikas Kumar
9968008206