Hi Everybody, Can anyone explain me how do we calculate the payment of overtime as per factory act 1948 and what are the deduction to made on the overtime. Please Explain me. Regards. Paul
From India, New Delhi
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5From India, New Delhi
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Dear Mr. Paul,
Vide Section 59 of the Factories Act, 1948, it contemplates that if a worker works in a factory for more than 9 hours in any day or for more than forty-eight hours in any week, he shall be entitled to wages at twice his ordinary rate of wages in respect of overtime work.
Here, wages mean the basic wages plus any allowances, including the cash equivalent. However, most companies only pay twice the basic wage.
For instance, if a worker works 5 hours of overtime and his basic wage is Rs.1000 per month, the calculation would be as follows:
Basic per month / 30 (to arrive at the daily basic) / 8 (to arrive at the hourly basic) * 5 (number of hours of overtime).
I hope this is clear.
Regards,
Michael Nicholas
From India, Madras
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Vide Section 59 of the Factories Act, 1948, it contemplates that if a worker works in a factory for more than 9 hours in any day or for more than forty-eight hours in any week, he shall be entitled to wages at twice his ordinary rate of wages in respect of overtime work.
Here, wages mean the basic wages plus any allowances, including the cash equivalent. However, most companies only pay twice the basic wage.
For instance, if a worker works 5 hours of overtime and his basic wage is Rs.1000 per month, the calculation would be as follows:
Basic per month / 30 (to arrive at the daily basic) / 8 (to arrive at the hourly basic) * 5 (number of hours of overtime).
I hope this is clear.
Regards,
Michael Nicholas
From India, Madras
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FACTORY ACT 1948.xls
FACTORY ACT 1948.pptx