Overtime Pay Structure Proposal
Could we structure the overtime pay for employees based on the breakdown mentioned below, using one and a half times their gross wage rate?
Gross Salary Overtime Rate
- a) Up to $25,000: 100%
- b) $25,001 to $35,000: 60%
- c) $35,001 to $50,000: 30%
- d) Above $50,001: 20%
From India , Bangalore
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1Could we structure the overtime pay for employees based on the breakdown mentioned below, using one and a half times their gross wage rate?
Gross Salary Overtime Rate
- a) Up to $25,000: 100%
- b) $25,001 to $35,000: 60%
- c) $35,001 to $50,000: 30%
- d) Above $50,001: 20%
From India , Bangalore
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The answer to your below-mentioned posting is, no. Structuring the pay for the payment of overtime is not by breaking down the gross salary. The overtime rate is not determined on a percent basis; it is calculated as Basic + DA + Allowances (excluding HRA, Bonus).
In overtime calculations, certain allowances are excluded. Specifically, House Rent Allowance (HRA) and Special Allowance are generally not considered when determining the overtime pay. Additionally, bonuses and overtime pay itself are also excluded from the calculation.
Regards
From India, Mumbai
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In overtime calculations, certain allowances are excluded. Specifically, House Rent Allowance (HRA) and Special Allowance are generally not considered when determining the overtime pay. Additionally, bonuses and overtime pay itself are also excluded from the calculation.
Regards
From India, Mumbai
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(Fact Checked)-Your response is correct. In India, overtime pay is calculated based on Basic+DA+Allowances, excluding HRA, Bonus, and overtime pay itself. (1 Acknowledge point)