Dear
Each & every Indian labour law concerning OT (Central & States) says that we are to make payment to the worker/employee @ double the ordinary rate of wages/ normal wages. According to me The Factories Act,1948, The Minimum Wages Act,1948 & State Shops & Commercial Establishment Acts provides us procedure for taking OT & for caculating the OT payments. Section 59 of Factories Act says that where a worker works on OT he will be entitled to wages at the rate of twice his ordinary rate of wages. According to Rule 25 of Minimum Wages (Central) Rules,1950 also states that OT is to be given at double the ordinary rate of wages. According to the Minimum Wages Act & Rules we are to divide the rate of wages by 26 for calculating 8 hours (one day) wages. For calculting one hr. wages we are to divide by 8 to one day wages. Thus if we take OT for one hour then we are to paid wages @ double this wages for one hour. State Shops & commercial Establishment Acts also provides provisions for OT payments. You may go through these enactments for having more clarification on the subject.
I hope this will help you in solving your query to some extend. This clarification is made for law abiding personnel.
Regards,
R.N.Khola
Sr.Associate
(Labour Law & Legal Consultants)
09810405361