Overtime calculation as per act - on which basis we should calculate - wages/26 or wages/30?

Mohan(Kumar)
Dear All, In overtime calculation, on which basis we should calculate - wages/26 or wages/30. under which section it has defined.
I need a calculation details as per act. please assist.
Thank you
Babu Alexander
To quote the section, under the Act, we need clarification whether you are registered under Factories Act or Shops and Establishment Act!
Where any person employed in any establishment / factory is required to work overtime; he shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.
Ordinary rate of wages is, for daily rated workmen is per day wages, based on 26 working day calculation. For monthly rated workmen it is per day wages divided by the number of days in a month.
Mohan(Kumar)
Dear babu sir,
Thanks for your prompt response. we have registered under Factories act. currently we are computing wages/26(for monthly salary) and we proposed to change it wages/30. but our management is asking us that where it has exactly stated in act book and under which section. kindly assist me.
Thank you
umakanthan53
Dear Mohan,
I would like to request you to go through the provisions of sec.52 of the Factories Act,1948 which provides for weekly holidays to adult workers employed in a factory. In essence you cannot require any worker to work for all the 30 days without any weekly holiday or compensatory holiday in lieu there of.
Babu Alexander
I appreciate, respected Mr.M.Umakanthan prompt reply.
Besides the above, I would also add that Mr.Mohan may refer to the Tamil Nadu minimum wages notification, wherein it is clearly mentioned per day wages.Wherever monthly wages are shown, the definition clause explains, to arrive at per day wages, the monthly wages is be dividable by 26 days, not 30 days.
anilkatteri
It will be calculated 26 days, double the normal wages
Mohan(Kumar)
Dear Umakanthan Sir and Babu Sir,
Thanks for your prompt response. actually what i am exactly looking for is under which section the formula for overtime has been mentioned in act book. in section 52 gives details retaled to working days and holidays. but i roaming about the formula in act book.
Thank you
nanu1953
Dear Mohan,
Sec-59 of the Factories Act stated about - Extra wages for overtime. There are two provisions - Where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week shall be eligible for OT payment at the rate twice his ordinary rate of wages.
There are 2 possibility - if a worker works for all 6 days in a week 9 hrs per day then he will be entitled for 54-48 = 6 hrs OT at the rate twice his ordinary rate of wages. Therefore, total hours of payment will be 48 + 6 x 2 = 60 hrs.
Another case may be any worker works for 5 days in a week of which 3 days 9 hrs and 2 days 10 hrs then the OT calculation will be 5 x 8 = 40 hrs normal + 3 days 9 hrs = 3 hrs single OT and 2 days 10 hrs = 2 hours single OT and 2 hours double OT . Therefore, total hours of payment will be 40 + 3 + 2 + 2 x 2 = 49 hours.
Thanks & Regards,
S K Bandyopadhyay ( WB, Howrah)

[Login to view]
neeraja73
Dear All, In overtime calculation, on which basis we should calculate - wages/26 or wages/30. under which section it has defined. I need a calculation details as per act. We have registered under Shop and Establishment Act. Also is this different state of TN and state of Maharashtra ,please assist. Thank you
pankajs
Dear Umakanthan.M Sir,
As per provisions of sec.52 of the Factories Act,1948 which provides for weekly holidays to adult workers employed in a factory. I agree that we cannot require any worker to work for all the 30 days without any weekly holiday or compensatory holiday in lieu there of.

But Sir we are paying salary to all employee for weekly off (including Sunday) in such case we should not calculated daily rate of wages (for OT) by dividing 30 or 31 instead of 26.
Need your opinion on this.
Regards
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute