How many Month Days would be taken in calculating OT Rate as per Factory Act. Is it 26? or Is it 30?

bhavin_ac@hotmail.com
Dear Sir/Madam, I have query that, How many Month Days would be taken in calculating OT Rate as per Factory Act. Is it 26? or Is it 30?
For Example Basic and DA of Any Employee is 15000/- then What is the OT Rate ( 1 hrs. Rate of Salary) of Employee.
Please do the needful.
Madhu.T.K
For calculating overtime wages, you have to take the average rate of wages. Avrage rate of earnings is the average of he earnings for the days he has "actually worked". A such it should be monthly wages divided by 26 and then divided by 8.
Bhartiya Akhil
Dear Madhu.T.K Sir,
What I feel, under the Factory Act, for calculation of overtime daily average earnings of the days actually worked by the workman is applicable for piece rate only.
My understanding is hourly rate of overtime is to be calculated by dividing by 8 to the daily rate if the workman is daily rated.
In case of monthly rated workman, first we have to convert the monthly rate in to daily dividing by number of days in a month (generally). So converted daily rate is to be calculated in to hourly rate dividing by 8.
However in some States, monthly rate is converted in to daily rate dividing by 26 as per the notification of that State under the Minimum Wage Act.
I am posting this only in view to correct myself.
Madhu.T.K
In respect of monthly paid workers, the system of dividing the gross salary by 30 is also in practice. But when it comes to employees who are eligible for overtime wages it is always fine if you take the same 'actually worked' principle as applied for piece rated employees. Again, average wages as per Minimum Wages Act is monthly wages divided by 26 and not 30.
pankajs
Dear Madhu Sir,
I always read your best legal opinion and also follow you and gain knowledge from you post.
Regarding OT calculation, you posted below opinion long back. Plz clarify what is correct as per law and under which Act.

"Under Factories Act, the OT is calculated at double the hourly average rate of wages. Hourly rate is the daily wages divided by 8 and daily rate is the monthly wages (Basic + DA only) divided by 30 or 26 as the case may be not necessarily be 26 days since in Factories Act there seems to be no mention about it like Gratuity Act where the daily rate is certainly calculated by dividing the monthly salary by 26 and not by 30 irrespective of whether the employee is monthly rated or daily rated. But under other labour enactments daily rate of wages means monthly wages divided by 30 in case of monthy rated workers and 26 in case of daily rated workers.
Regards,

Pankaj Shukla
Gurgaon
Madhu.T.K
Both principles are in practice but since the overtime wages is paid to workers and their daily rate of wages as per law is monthly wage divided by 26, it is advisable to use 26 as divisor both for daily rated workers and monthly rated workers.
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