No Tags Found!


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
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.