How Should We Calculate Overtime? Seeking Advice on Including Lunchtime and Rules

I have a query about overtime. Our office hours are from 9:30 to 7:00, so whoever works beyond these hours is considered to be doing overtime.

Please find attached the OT calculation for your perusal. Kindly check and let me know if any corrections are needed. Also, please advise if we should consider lunchtime in overtime calculations. Additionally, if there are any rules regarding overtime, please let me know.

An early reply would be highly appreciated.

Thanks & Regards,
Sujata

I have gone through your calculation. It seems that the driver is paid a monthly salary of INR 12,500, and the working days are 27. You have calculated overtime at a single rate.

Suggested Overtime Calculation

I think the calculation should be as follows:

OT = (Gross salary / (month day i.e. 30 or 31)) / 8 x No. of OT hours x 2.

Regards,

Payment to the Driver

We are providing payment to the driver because we hire the vehicle along with the driver, and the cost of the driver or payment to the driver is covered by the vehicle owner. The minimum working hours should be 8 hours.

Employee Driver Overtime Calculation

If the vehicle driver is an employee of the company, then the calculation is as follows: Normal working hours are from 8:00 am to 5:00 pm (excluding lunchtime, i.e., 1:00 pm to 2:00 pm). Overtime (OT) calculation: Suppose from 5:00 pm to 7:00 pm, OT will be 2 hours. The driver's rate is as per the minimum rate of the central or state regulations. OT rate is twice the rate of normal hours.

He is not a driver; he is an admin assistant, and he has to go outside for official work, so we provide a petrol allowance of Rs. 2.50 per km.

Working Hours Clarification

Secondly, our working hours are 9:30, not 8.

So, please let me know if the attached calculation is correct. Also, as per our company policy, if any employee works fewer hours, then we will not consider the extra minutes for overtime.

Regards,
Sujata

Please let us know whether the company has a policy of paying its employees at a single rate of wages/salary. Secondly, does your company have a 5-day working week or a 6-day working week? Overtime should be paid at double the rate of wages/salary.

Overtime Calculation for a 5-Day Working Week

If your company has a 5-day working week, then the calculation for overtime should be as follows: OT = ((Gross Salary / Monthly days i.e., 20 days or 21 days applicable) / 9.50) x 2) x No. of OT Hours.

Regards,
Avinash K.