Calculating Overtime Pay for a ₹15,000 Salary: How Do You Do It Fairly?

An employee worked 2.5 hours of overtime in a month. Let's assume their gross salary is ₹15,000.

How should the overtime amount be calculated?

The general shift consists of 9 hours with 6 days of work per week.

As per Section 59 of the Factories Act, when a worker works for more than 9 hours in a day or 48 hours in a week, he/she will be entitled to overtime wages at twice the ordinary rate of wages.

The ordinary rate of wages will include Basic + Other Allowances. In your case, it will be the Gross Salary.

Regards,
MVK