Overtime Payment According to the Factories Act of 1948
As per the Factories Act of 1948, on which of the following salary heads should overtime be paid?
Salary Heads:
1. Basic
2. Variable Dearness Allowance (VDA)
3. Fixed Dearness Allowance (FDA)
4. House Rent Allowance (HRA)
5. Conveyance Allowance
6. Bus Transport Allowance
7. Washing Allowance
8. Adhoc Allowance
9. Special Allowance
10. Shift Allowance
Regards,
Bharat
From India, Mumbai
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1As per the Factories Act of 1948, on which of the following salary heads should overtime be paid?
Salary Heads:
1. Basic
2. Variable Dearness Allowance (VDA)
3. Fixed Dearness Allowance (FDA)
4. House Rent Allowance (HRA)
5. Conveyance Allowance
6. Bus Transport Allowance
7. Washing Allowance
8. Adhoc Allowance
9. Special Allowance
10. Shift Allowance
Regards,
Bharat
From India, Mumbai
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Dear Bharat, it will come under following salary heads. 1. Basic 2. Variable Dearness Allowance (VDA) ( I have little bit doubt) 3. Fixed dearness Allowance (FDA) Best Regards, Dash
From India, Mumbai
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From India, Mumbai
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Calculation of Overtime Pay
The overtime (OT) is to be paid on Basic + Dearness Allowance (DA) + Variable DA. The method to be followed for calculation is to determine the total of the above for one day. Suppose OT hours in a particular month are 24 hours, then OT payable would be 48 hours, which equals 48/8 = 6 days. The concerned worker has to be paid 6 days' wages based on the above calculation.
From India, Kota
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The overtime (OT) is to be paid on Basic + Dearness Allowance (DA) + Variable DA. The method to be followed for calculation is to determine the total of the above for one day. Suppose OT hours in a particular month are 24 hours, then OT payable would be 48 hours, which equals 48/8 = 6 days. The concerned worker has to be paid 6 days' wages based on the above calculation.
From India, Kota
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Please read carefully the definition of wages in the Factory Act. The overtime (OT) has to be paid on all components of wages, whatsoever it may be. We sought the opinion of prominent lawyers on this.
Regards,
K.K. Choudhary
From India, Mumbai
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Regards,
K.K. Choudhary
From India, Mumbai
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Dear All,
Overtime Payment as per the Factories Act of 1948
As per the Factories Act of 1948, on which of the following salary heads should overtime be paid:
1. Basic
2. Variable Dearness Allowance (VDA)
3. Fixed Dearness Allowance (FDA)
4. House Rent Allowance (HRA)
5. Conveyance Allowance
6. Bus Transport Allowance
7. Washing Allowance
8. Adhoc Allowance
9. Special Allowance
10. Shift Allowance
Regards,
Bharat
Considerations for Allowance Inclusion
Regarding the list provided, the inclusion of both Conveyance Allowance and Bus Transport Allowance may lead to ambiguity. It is advisable to review any settlement agreements in place to ensure clarity in such cases. Courts may question the purpose of having two allowances of similar nature, potentially leading to complications.
Excluding House Rent Allowance (HRA) and Washing Allowance from overtime payment considerations is logical, as these allowances are fixed and not related to overtime work.
Night Shift Allowance and Overtime
For Night Shift Allowance, if an employee is required to work overtime beyond the specified night shift hours, the allowance should be paid as a single amount.
Regards,
T. Sivasankaran
From India, Chennai
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Overtime Payment as per the Factories Act of 1948
As per the Factories Act of 1948, on which of the following salary heads should overtime be paid:
1. Basic
2. Variable Dearness Allowance (VDA)
3. Fixed Dearness Allowance (FDA)
4. House Rent Allowance (HRA)
5. Conveyance Allowance
6. Bus Transport Allowance
7. Washing Allowance
8. Adhoc Allowance
9. Special Allowance
10. Shift Allowance
Regards,
Bharat
Considerations for Allowance Inclusion
Regarding the list provided, the inclusion of both Conveyance Allowance and Bus Transport Allowance may lead to ambiguity. It is advisable to review any settlement agreements in place to ensure clarity in such cases. Courts may question the purpose of having two allowances of similar nature, potentially leading to complications.
Excluding House Rent Allowance (HRA) and Washing Allowance from overtime payment considerations is logical, as these allowances are fixed and not related to overtime work.
Night Shift Allowance and Overtime
For Night Shift Allowance, if an employee is required to work overtime beyond the specified night shift hours, the allowance should be paid as a single amount.
Regards,
T. Sivasankaran
From India, Chennai
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