How to Calculate Daily and Overtime Wages Under the Factories Act of 1948? Seeking Clarity on PF Deductions

Dear seniors, our employee's gross salary is Rs. 10,000 per month, and they are working 12 hours a day. How can we calculate the per-day salary and overtime salary as per the Factories Act of 1948? Please check the following and kindly provide the correct calculation:

One Day Salary Calculation

(A) Rs. 10,000 / 26 = Rs. 384.6 per day
(B) Rs. 10,000 / 30 = Rs. 333.33 per day
(C) February month Rs. 10,000 / 28 = Rs. 357.14
(D) January month Rs. 10,000 / 31 = Rs. 322.58 per day
(E) Shall we divide the gross salary as per every calendar month's days?

Overtime Salary Calculation for One Hour

(A) [Rs. 10,000 / (26 x 8)] x 2 = Rs. 96.15 per hour
(B) [Rs. 10,000 / (30 x 8)] x 2 = Rs. 83.33 per hour
(C) [Rs. 10,000 / (28 x 8)] x 2 = Rs. 89.28 per hour
(D) [Rs. 10,000 / (31 x 8)] x 2 = Rs. 80.64 per hour
(E) Shall we divide the gross salary as per every month's calendar days, then divide by 8 and multiply by 2?

Which calculation is correct for the above per-day and hourly wages calculation? From which calculation will PF be deducted at 12% from the employee's salary? Otherwise, will PF be deducted at 12% from the employee's basic salary? Is PF deduction applicable to overtime wages or not? Can we calculate overtime salary from the basic salary instead of the gross salary? Can we calculate a 12% PF deduction from the basic salary instead of the gross salary? Please clarify our doubts.

Thanks with regards,

Thirumurugan

Dear Thirumurugan,

You have not mentioned the type of establishment. The normal working hours per day are 8 hours only. However, depending on the type of establishment, there is variation. For instance, in the case of Factories and Motor Transport Establishments, it is 9 hours per day. Similarly, overtime hours have their daily and weekly ceilings. Therefore, as a routine practice, you cannot expect 12 hours of work per day, including overtime.