Overtime Payment According to Tamil Nadu Labor Act
As per the Tamil Nadu Labor Act, if a person is doing overtime (OT), we have to pay double the amount of wages. For example, if 100 is the normal wage, we should pay 200 for the overtime hours worked. For PF, the OT amount should not be deducted, but we should contribute to ESI.
In my opinion, if a person is doing OT, it should not be mentioned on the payslip or in the register. Instead, prepare a separate sheet to distribute the overtime wages. By following this approach, you can pay normal wages. Coordinate with your accounts team to execute this effectively.
Remember to be fair to both the employee and the employer.
Thank you.