Struggling to Find the Law Paper on Overtime Calculation Under the Factories Act – Can Anyone Help?

Dear all, can you all please send me the law paper for stating the overtime calculation as per the Factories Act? As per my information, it is BASIC + DA, but I was not able to trace the law paper.

Dear Leaders,

As per my knowledge, 1hr OT = [(Basic + DA/Special Allowance) ] * 2 / 26 / 08. This is my company's policy.

Overtime Calculation as per the Factories Act

The OT calculation as per the Factories Act is:

PF Loading (Basic + DA) / (30 * 8) * 2 * Number of OT hours.

Regards,
Nagarathna B.V
Assistant Manager - HR

As per the Factories Act of 1948, if a worker is employed for more than 9 hours per day or 48 hours per week (whichever is more beneficial to the worker), they are entitled to receive double wages for hours worked beyond the specified limit. If the worker has worked additional hours but within the aforementioned limit (9 hours per day or 48 hours per week, depending on the circumstance), they are only entitled to single wages. However, in any scenario, they will receive double wages for hours worked beyond the specified limits.

Regards,
Abbas. P. S

Overtime Calculation Details

1. Overtime is always double regardless of the number of extra hours worked.
2. The amount per overtime hour is calculated as follows: {Gross/(number of working days in a month)/8}*2. For example, if a person's gross salary is 3300/-, then in the month of January, the overtime rate would be (3300/25/8)*2 = Rs. 33.00, and in the month of February, it would be (3300/24/8)*2 = Rs. 34.38, and so on.

For further clarification, please refer to the Payment of Wages Act along with the Factory Act.

Regards,
Manish Gupta
Admin & HR Manager
Gini & Jony Ltd

My question is if he had worked for 22 days, then how do we calculate the OT amount? Should it still be divided by the number of working days in a month?

Overtime Calculation Clarification

OT is to be calculated in hours. You can easily calculate it for a day. The law states that OT has to be "twice the ordinary wage." So, if you want to calculate it for days, the same principle applies. Regardless, that particular employee has to be paid double, irrespective of hours or days.

If a worker's 1st shift is from 7:00 A.M to 3:30 P.M, including a half-hour (0.30) lunch break, and thereafter they work until 7:00 P.M, then their overtime (O.T) should be 3.50 hours x 2.

For workers on the 2nd shift (3:00 P.M to 11:00 P.M, an 8-hour shift including dinner) who work from 7:00 P.M to 7:00 A.M for a 12-hour shift, what should be their overtime - 3.50 hours or 4 hours?

Also, if the production target for normal duty is 10,000 pieces, should it be increased to 15,000 or less for a 12-hour shift?

Please assist with the above matter.

Which component should be allowed for the calculation of overtime?