Confused About Overtime and Rest Day Pay? Seeking Clarity on Payment Rules

Good morning. I am very confused regarding overtime payment and payment for working on a rest day (weekly off).

Understanding Overtime and Rest Day Payments

I want to know the difference between overtime (more than 48 hours in a week) payment and rest day (weekly off) payment. If Mr. X is an employee and he works from Monday to Saturday for 54 hours (08X06=48 hours of duty and the remaining 6 hours as OT), and after a week, he worked on his rest day, i.e., Sunday, then how will the payment be made in both cases?

Payment for Working on Holidays

In another query, if Mr. X works on a festival holiday and a national holiday, then how should the payment be made?

I request all seniors to kindly reply.

Let's first distinguish remuneration for work done over and above normal working hours from compensation for the whole day's work done on a holiday. The remuneration for overtime work has to be calculated at twice the rate of normal wages for an hour. On the contrary, the compensation for working on a holiday, whether national or festival, can be a compensatory holiday prior to or after the day or a day's extra wages in addition to the normal wages for the day, as per the applicable statute.

Regards

Let's first distinguish remuneration for work done over and above normal working hours from compensation for the whole day's work done on a holiday. The remuneration for overtime work has to be calculated at twice the rate of normal wages for an hour. On the contrary, the compensation for working on a holiday, whether National or Festival, can be a compensatory holiday prior to or after the day or a day's extra wages in addition to the normal wages for the day, as per the applicable Statute.

Thank you, boss, but please clarify the meaning of the statement below under Section 23(4) of the Minimum Wages Rules 1950 as given: "An employee shall be granted for rest day wages calculated at the rate applicable to the next preceding day. In case he works on the rest day and has been given a substituted rest day, he shall be paid wages for the rest day on which he worked at the overtime rate and wages for the substituted rest day at the rate applicable to the next preceding day."

Regards.

Please carefully read Sec. 13(1)(b) and (c) of the MW Act 1948 with the rider clause to the first proviso to Rule 23(4) of the Central Rules. Normally, the seventh day following six days of continuous work shall be an unpaid day of rest. That's why the concept of a month under industrial parlance is recognized to comprise 26 days. However, since the provisions of the MW Act 1948 are intended to achieve the object of doing social justice to the workmen employed in the scheduled employments by prescribing minimum rates of wages for them, wages for the day of rest are notionally included in the minimum rates. That's why you will find that generally, the Government notifications fixing minimum rates of wages will have an explanatory note saying that the daily rate of minimum wages shall be arrived at by dividing the monthly rate by 26 and the monthly rate of MW by multiplying the daily rate by 30. Now, try once again deeply reading the proviso to Rule 23(4).

Dear Sir, I am still confused. Please tell me the simple meaning of the statement given below as per the Abstract of MW, 1948.

IV. Hours of Work and Holidays

The number of hours which shall constitute a normal working day shall be:

- In the case of an adult, 9 hours.
- In the case of a child, 4 ½ hours.

The working day of an adult worker, inclusive of the intervals of rest, shall not exceed twelve hours on any day. The employer shall allow a day of rest with wages to the employees every week. Ordinarily, Sunday will be the weekly day of rest, but any other day of the week may be fixed as such rest day. No employee shall be required to work on a day fixed as a rest day unless he is paid wages for that day at the overtime rate and is also allowed a substituted rest day with wages. (See Rules 23).

When a worker works in an employment for more than nine hours on any day or for more than forty-eight hours in any week, he shall, in respect of overtime worked, be entitled to wages in scheduled employment other than agriculture, at double the ordinary rate of wages.

Waiting for more replies from other people.

Greetings Gautam, As regards overtime, the provisions of the Factories Act read as follows:

Extra Wages for Overtime

(1) Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.

Regarding payment for weekly off or national or festival holiday, if he has worked on the above days, he is entitled to wages equivalent to one additional day.

Considering 4 weekly offs in a month and the number of calendar days in a month as 30, he will be entitled to 30 days' wages. However, if he has worked on one day being his weekly off, he will be entitled to 31 days' wages.

Trust the matter is clear.

Regards

Thank you, boss, but I do not agree with your statement. Because if we consider that day as overtime, as more people say, then we have to pay double wages. So, 31 days' payment will be wrong. We have to pay him 32 days' wages.

Clarification on Overtime and Rest Day Payment

For time, if I go as per your guideline, then please read and let me clarify the statement as follows:

No employee shall be required to work on a day fixed as a rest day unless he is paid wages for that day at the overtime rate and is also allowed a substituted rest day with wages (See Rules 23).

It means if any employee works on a rest day (weekly off, national holiday, or festival holiday), he will be entitled to thrice the payment. Because when he works on a rest day, that will be considered as overtime, so payment will be made as double, and as he works on his rest day, he must be given a rest day in the next five days.

Regards