Overtime Pay Of Daily Wage Employee? - DOC Download

We have started our own industry, and I am heading the HR department. I would require anyone's guidance in knowing about what would be the wage to an employee working on a daily wage basis if he is doing overtime.

Dear,

Your query is not clear, but it seems that you want to know the overtime (OT) payment rate for daily wage employees working with you. We do not know which of the Acts are applicable to your unit in relation to OT payment. OT payment provisions are there in the State Shops Act, Minimum Wages Act, Factories Act, 1948, etc. Therefore, first examine which of the Act(s) are applicable to your industry and then go through the relevant provisions relating to your query.

With Regards,
R.N.Khola

Please be clear on the question. You have to be clear on the question for us to give you a comment or feedback.

Thank you.

For daily-rated employees, wages are paid for eight hours of work on a daily basis. To calculate overtime payment/wages, first, normal wages per hour need to be calculated by dividing the daily wages by 8 (eight). Then, the overtime wages per hour will be double the normal wages per hour.

I hope this clarifies things for you.

Minimum wages as per the state acts are to be paid for 8 hours. The per-hour rate should be doubled when paying for overtime hours.

Santosh, Goa

Hi,

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Regards,
Nandha Kumar
Salem

Dear Nandha Kumar,

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All the best!

Santosh is right on this. However, I would rather discourage daily wage earners from working overtime, as they will tend to go slow during normal working hours to earn some extra money through overtime. The best way to handle this is to get the work done through contract work.

Overtime pay for daily wage employees?

Dear annudhar,

Please note that as per the Factory Act of 1948, employees working on a Permanent/Daily/Temporary/Casual basis are required to work 9 hours a day or 48 hours a week. In addition to this, you must pay overtime at double the rate as per the Minimum Wages Act.

If you have any doubts, please contact (M) - 09900552668.

NKJ

In my organization, as an HR professional, I do not pay overtime. Instead, I compensate them by giving them compensatory offs. It's a request to all HR personnel to not entertain the concept of overtime, which brings more burden on management.

Regards, Ashfaq.

If an employee worked 4 hours of overtime, they will receive one day's salary doubled for the overtime hours.

Regards,
Rushyendrudu

Respected Sir/Madam,

I am Dattatraya Shelke, 28, from Pune, looking for an opportunity in HR & Admin. Recently, I have completed an MBA in HR and have gained 5-6 years of experience in HR & Admin operations. I am very keen on joining core HR positions. If given the opportunity for an interview, I will surely prove myself to be the best candidate. I am looking forward to being of assistance.

Yours Sincerely,
Dattatraya B. Shelke
Mob: 9960 460 763, 9370 275 575