How Do I Calculate Overtime and Set Minimum Wage for My Trading Business?

Dear Friends,

I have these 2 questions, please help me out. How should I calculate overtime for a trading proprietary business, and how should I decide the minimum wage hour for the employees? Please help me; I want answers very soon.

Anuj

Anju,

Overtime calculation = (per day Basic + DA) / 8 * 2.

Your question about the minimum wage per hour is not clear.

Please refer to the notification issued by the government under the Minimum Wages Act to determine the minimum wages. The notification specifies wages for various businesses such as hospitals, hotels, etc. I believe your organization falls under the category of shops and establishments. In Mumbai, the rates are as follows: skilled - 4031, semi-skilled - 3931, unskilled - 3831. If your organization does not fall under any of the businesses specified, you may refer to the Chief Labour Commissioner for further guidance.

Over time calculation (as per the act, monthly salary): Total salary/26/8 * number of hours OT * 2.

Regarding minimum wages, you can get information from the Labour Department in your state.

Regards,
Ramu Hegde