How Can We Effectively Reduce Overtime Wages in a 24/7 Process Industry?

Seeking Advice on Reducing Overtime Wages

I am working in a process industry that operates 24 hours a day. Our management has decided to reduce overtime wages. Can anybody help me with cluster manning to reduce overtime wages or suggest any other techniques for reducing overtime wages?

Regards,
Amudha

If any company pays OT as per statutory regulations, OT can be a burden for companies. Take the average OT payments for the last 3 or 6 months and divide them into ratios. For example, if the OT payments are as follows: Jan: 25000, Feb: 38000, Mar: 41000, Apr: 19000, May: 20000, and June: 39000, then the average is 30334. If the minimum wage in your industry is 5000/-, the ratio will be 6.

It is important to consider peak timings, total OT hours, and any gaps in scheduling. In the example provided, instead of paying OT, if you recruit 6-7 manpower, the total man-hours in a month would be 1404 hours, which may resolve the issue of OT.

Hope this response clarifies the situation.

Regards,
Karthik