Dear Friends,
I am working in a logistics company, and a dispute has arisen regarding the wages to be taken into account in the calculation of overtime wages.
My service provider has provided me with a judgment of the Bombay High Court regarding the inclusion of House Rent Allowance (HRA) in the calculation of overtime wages.
Moreover, in the Factories Act 1948, Section 59, Subsection 2 reads: "Ordinary rates of wages means the basic wages plus such allowances, including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to, but does not include a bonus and wages for overtime."
The term "plus such allowances" refers to only the Dearness Allowance (DA) or special allowances, or all such allowances being given to the worker.
Please send me clarification on this matter as I am confused. Until now, my understanding is that for the calculation of overtime, only basic wages and DA have to be taken into account.
This matter is urgent!
Sanjeev
From India, Pune
Acknowledge(0)
Amend(0)
2I am working in a logistics company, and a dispute has arisen regarding the wages to be taken into account in the calculation of overtime wages.
My service provider has provided me with a judgment of the Bombay High Court regarding the inclusion of House Rent Allowance (HRA) in the calculation of overtime wages.
Moreover, in the Factories Act 1948, Section 59, Subsection 2 reads: "Ordinary rates of wages means the basic wages plus such allowances, including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to, but does not include a bonus and wages for overtime."
The term "plus such allowances" refers to only the Dearness Allowance (DA) or special allowances, or all such allowances being given to the worker.
Please send me clarification on this matter as I am confused. Until now, my understanding is that for the calculation of overtime, only basic wages and DA have to be taken into account.
This matter is urgent!
Sanjeev
From India, Pune
Acknowledge(0)Amend(0)
The High Court judgment is not available for reference. Therefore, I am unable to direct you based on the judgment. Please review the court's interpretation of the Human Resources Allowance (HRA) and how the HRA was paid in the relevant case. However, if you follow the Factories Act, Overtime Wages shall be calculated based on Basic + DA/Special Allowance only.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Stuck with an HR fire? Get a verified answer before your next coffee. - Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
OVER TIME PAYMENT-wages under the Factories Act - Madras HC judgment.doc