Which salary qualifies for deduction if an employee takes a day's leave without pay? is it Basic plus DA alone or the gross salary? That should be the salary which should qualify for overtime also. Average pay of a worker is the total salary divided by the days and hour. If HRA is given to a worker separately and without reference to the days the employee remained on leave without pay, then you can exclude that HRA from salary for all purposes including over time calculation. If any other allowance is paid to a particular worker considering his special skill, that can be excluded from salary for all purposes. But an allowance universally paid to all the workers can not be excluded from the scope of wages.