Dear All,

I am seeking information regarding the maximum overtime hours and overtime calculation method as per the Tamil Nadu Shops and Establishment Act of 1947. Could someone please provide the above-requested details along with supporting documents? Your assistance would be greatly appreciated.

Regards,
Nagaraja.K

From India, Bangalore
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Hi Nagaraja,
Please note the details.
Working Hours – Should not be more than 9 hours including one hour rest interval
Overtime – Should not be more than 6 hours in a week / overall 54 hours in a week.
For engaging of OT, double the wages should be paid.
Please provide your contact e-mail id to share the supporting documents.

From India, Chennai
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Hi,

Thank you for your response to Mr. Nagaraja. Could you please confirm on the overtime wages? Are they based on Basic and DA or Gross Salary? If it is Gross salary, kindly provide the payhead that can be excluded from the Gross Salary.

Regards,
Srikantyh

From India, Bangalore
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Could you please share the supporting documents along with this discussion...
From India, Bangalore
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Dear Mr. Srikanth,

For better understanding, we would like to quote the relevant section/rule stated under the Tamil Nadu Shops & Establishments Act about the overtime wages.

Sec. 31 - Wages for overtime work: where any person employed in any establishment is required to work overtime, he shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages.

Explanation: For the purpose of this section, the expression "ordinary rate of wages" shall mean such rate of wages as may be calculated in the manner prescribed.

Rule 10 - Manner of calculating ordinary rate of wages: For the purpose of the Explanation to section 31, the ordinary rate of wages per hour shall be calculated by dividing the total wages payable to a person employed for the hours actually worked by him during the wage-period by the number of such hours in the wage-period.

Hope you would be clear now... So, in calculating overtime wages, the gross salary should be considered.

For example: a person earning a gross salary of Rs. 10,000/- in a month. Then, the per day wages will be Rs. 10,000/- divided by 26 days. You will get one day's salary, i.e., for 8 hours. Again, you have to divide it into 8, then you will get a per hour salary. It should be paid double the wages for overtime.

From India, Chennai
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