Dear Ms. Nirmla,
From the legal point of view, Mr. Vipin is right.
Overtime is to be paid double of "Ordinary rate of wages" under sub-section(1) of 59 of Factory Act 1947 thus I would like to request those who are calculating the overtime on "Basic Salary" to please go through sub-section (1), (2) & (3) of 59 under under said act.
Note:
Overtime rate:- It shall be deemed to be equivalent to the daily average of their full-time earnings for the day on which they actually worked on the same day.
Secondly, overtime is being calculated on 26 days not on 30 days because in factory act days means 26 and minimum wage also calulated on 26 days.
So, it's my request to those who are calculating the overtime on Basic and on 30 days pls discuss the same with your legal advisor, if have and get his openion so that you could compliance accordingly.
If have any query can contact me:
Regards,
From-
Vijay Vashisth
Manager HR
09992334610