Is it required to calculate overtime pay based on gross pay? Otherwise, can we calculate only on Basic + DA?

Is it required to calculate overtime pay based on gross pay? Otherwise, can we calculate only on Basic + DA?

It is essential to determine whether overtime pay should be computed based on gross pay or if it can be calculated solely on Basic + DA.

OT is to be calculated based on the average wages per day. If you have fixed components of salary that are paid when an employee is on leave with pay or deducted when the employee is on leave without pay, that component should also be taken as a base for overtime payment. HRA, as a component of salary that is not paid when an employee is on leave without pay, is definitely a component of wages to be considered for overtime payment.

At the same time, house rent allowance paid to certain employees, either along with salary or by means of payment directly by the employer to the landlord, is purely an allowance that cannot be considered for overtime payment, gratuity calculation, leave enhancement, etc.