Overtime Calculation Confusion: Should HRA and Other Allowances Be Included?

Dear Seniors,

For the calculation of overtime (OT), apart from Basic and DA, can we include HRA, CCA, other allowances, and conveyance, or simply Basic and DA? Kindly help me in this regard.

Thanking you,

Yours faithfully,

AVGN Vara Prasad

Dear,

Overtime should be paid at double the rates of wages. If your definition of wages, as per the Payment of Wages Act, includes HRA, CCA, and other allowances, then overtime should be calculated as twice the basic salary and all allowances.

Thank you.

Regards,
J. S. Malik

Dear Member,

Section 59 of the Factories Act states that overtime should be paid at double the wages, which includes basic wages and all other allowances that are being paid to the employees.

I agree with Mr. Malik's reply.

V.K. Sehgal

Dear Mr. Malik and others,

With due respect, I beg to state that the interpretation of Sec 59 is not being done in the right way. Please refer to Sec 59 (1) & (2) for further clarification. Eagerly waiting for your reply.

Regards

Dear seniors, can anybody send me the details of components for overtime calculation as per the Factories Act?

Example Components for Overtime Calculation

For example, components like:

- BASIC + DA + HRA + CA + SP = Total

Rs. 2725/- Rs. 200/- Rs. 200/- Rs. 400/- Rs. 3525/-

How do we calculate per hour? Please guide me without delay.

Thanks & Regards,
Avinash Kumar.K