Dear Friends,
I am working in a logistics company, and a dispute has arisen regarding the wages to be taken into account in the calculation of overtime wages.
My service provider has provided me with a judgment of the Bombay High Court regarding the inclusion of House Rent Allowance (HRA) in the calculation of overtime wages.
Moreover, in the Factories Act 1948, Section 59, Subsection 2 reads: "Ordinary rates of wages means the basic wages plus such allowances, including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to, but does not include a bonus and wages for overtime."
The term "plus such allowances" refers to only the Dearness Allowance (DA) or special allowances, or all such allowances being given to the worker.
Please send me clarification on this matter as I am confused. Until now, my understanding is that for the calculation of overtime, only basic wages and DA have to be taken into account.
This matter is urgent!
Sanjeev
I am working in a logistics company, and a dispute has arisen regarding the wages to be taken into account in the calculation of overtime wages.
My service provider has provided me with a judgment of the Bombay High Court regarding the inclusion of House Rent Allowance (HRA) in the calculation of overtime wages.
Moreover, in the Factories Act 1948, Section 59, Subsection 2 reads: "Ordinary rates of wages means the basic wages plus such allowances, including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to, but does not include a bonus and wages for overtime."
The term "plus such allowances" refers to only the Dearness Allowance (DA) or special allowances, or all such allowances being given to the worker.
Please send me clarification on this matter as I am confused. Until now, my understanding is that for the calculation of overtime, only basic wages and DA have to be taken into account.
This matter is urgent!
Sanjeev