Overtime Calculation Confusion: Should It Be Based on Gross or Total Salary? Urgent Help Needed

Can someone help me with the calculation of overtime with an example? Please provide an immediate reply as it is needed urgently. Thank you.

Overtime Salary Calculation

OT Salary to be calculated: Gross salary / No of days / 8 * OT hrs * 2 = OT Amount - ESI 1.75% = Earned amount.

For example: 5600 / 26 (Days) / 8 (per day) * 1 (OT) * 2 (Double) = 53 - 1 (ESI) = 52.

Regards

Overtime Calculation Method

Overtime (OT) should be calculated as double the sum of BASIC + DA (Dearness Allowance). The calculation is based on a monthly rate divided by 26 days, and then further divided by the number of hours. It should not be calculated on the gross salary.

Regards

Overtime Calculation Example

The exact calculation of overtime is as follows:

The number of working hours in a week is very important for calculating overtime. For example, in a factory, the weekly working hours are 48 hours. Hence, the calculation of overtime will be:

BASIC + DA / 198

198 = 48 * 52 / 12. This factor 198 is derived as follows: In a week, 48 hours in 52 weeks is 8 * 52, and then divided by 12.

Regards, Sudipta