Confused About Overtime Pay and Hours? Let's Clarify the Rules Together

Hi Members,

I need to know about the overtime policy. I have seen various calculations in a few posts and am a little confused.

1. Are the overtime hours fixed? If yes, then how many are they?
2. Should the overtime pay be mentioned on the payslip, or is it optional?
3. If an employee is on leave for, let's say, 2 days but worked overtime on the remaining days and still cannot make up the total hours, will they be paid?

My company is based in the US, and we work 5 days a week for 8-1/2 hours. Please advise me on the calculation part.

Thanks & Regards,
Sandy

As per rule, 48 hours have to be worked in a week. If not, overtime may extend to 60 hours. Beyond that, it should not go. We have to pay double the wage for the overtime.

Dear all,

What is the rate of overtime? Some are given Basic+DA, and some are paid a gross salary. Actually, what should be the rate as per the law.

Hi Friends,

Can anyone tell me if there is any overtime salary given to Development Employees in IT Companies? Or do companies provide meals and compensatory time off to these employees?

Hi,

When a worker works in a factory for more than 9 hours in a day or for more than 48 hours in a week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages - ref Factories Act, sec 59(1) Extra Wages for Overtime.

For calculating overtime wages, all components (Basic + DA + all other allowances excluding bonus and contributions paid (PF, ESI, etc.) should be taken into account - ref Factories Act, sec 59(2).

Overtime wages should be mentioned in the payslip (see Rule 26(2) of Factories Act, Minimum Wages Act 1948). Also, one can refer to Form XI (wage slip).

Sec: 64(4) - Limitation on Overtime Hours:

(i) The total number of work hours in a day shall not exceed ten.

(ii) The total number of hours of work in a week, including overtime, shall not exceed sixty - this means a worker can have 2 hours of overtime daily, considering a week.

(iii) The total number of hours of overtime shall not exceed fifty for any one quarter (Quarter means a period of three consecutive months beginning on the 1st of January, the 1st of July, or the 1st of October).

Regards,

Muthu

Dear Muthu,

In my opinion, Section 64 imposes conditions for State Governments while making Factory Rules for taking overtime from the workers. These are points to be kept in view while framing rules for the limit of work and overtime. Section 64(4) does not allow us to take overtime. In my opinion, we are required to refer to the applicable State Factory Rules for taking overtime work from workers.

Regards,
R.N.Khola

In Maharashtra, we assign 12-hour shifts to workers from 7:00 A.M. to 7:00 P.M. (normal working hours are from 7:00 A.M. to 3:30 P.M., including a half-hour lunch break). We pay overtime after normal working hours, which amounts to 3.5 hours at double the rate. During normal hours, we achieve a production of 10,000 pieces, and during overtime, we produce 5,000 pieces, which is half of the normal hours. Is this correct?

If workers from the night shift are called for a 12-hour duty from 7:00 P.M. to 7:00 A.M., including dinner (normal working hours are from 11:00 P.M. to 7:00 A.M.), we pay overtime for 3.5 hours at double the rate. In this scenario, we achieve a production of 10,000 pieces during normal hours and 5,000 pieces during overtime, which is half of the normal hours. Is this correct?