I am working in an MNC. I just want to know if any worker works more than 8 hours in a day, do we have to give them overtime? So, my question is, should overtime be calculated based on the basic salary or the gross salary?
From United Kingdom,
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From United Kingdom,
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Welcome to CiteHR. Regarding your query, first, determine under which Act/Rules you are required to pay overtime, and then review the provisions relating to the payment of OT in that Act/Rules.
[R.N.KHOLA]
From India, Delhi
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From India, Delhi
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Overtime Calculation Formula in Manufacturing
We are a manufacturing company, and we use the following formula for overtime (OT) calculation:
OT Formula = Basic / number of working days in a month / number of working hours in a day * 2 * number of OT hours
Thank you.
Regards, Sarojini
From India, Hyderabad
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We are a manufacturing company, and we use the following formula for overtime (OT) calculation:
OT Formula = Basic / number of working days in a month / number of working hours in a day * 2 * number of OT hours
Thank you.
Regards, Sarojini
From India, Hyderabad
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I think this is the right formula to calculate OT as suggested by Sarojini. Sarojini is a part of our manufacturing company, and we use the following formula for OT calculation:
OT Formula
OT Formula = Basic / no. of working days in a month / no. of working hours in a day * 2 * no. of OT hours
Please review and let me know if you need any further clarification or information.
Thank you.
From India, Bangalore
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OT Formula
OT Formula = Basic / no. of working days in a month / no. of working hours in a day * 2 * no. of OT hours
Please review and let me know if you need any further clarification or information.
Thank you.
From India, Bangalore
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Dear Veeresh,
For your clarification:
1st Step: O.T = Basic / no. of working days in a month. You will get the Basic pay for one day. Now it is to find out the Basic Pay for an Hour (in our concern, I use calculation for minutes). So the next step is,
2nd Step: The result of the 1st step / no. of working hours per day.
3rd Step: The result of the 2nd Step X no. of O.T hours worked.
For example: Basic = 3500.00, No. of Days: 25, No. of working hours: 8, O.T hours = 2. Then,
3500 / 25 / 8 * 2.
From India, Coimbatore
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For your clarification:
1st Step: O.T = Basic / no. of working days in a month. You will get the Basic pay for one day. Now it is to find out the Basic Pay for an Hour (in our concern, I use calculation for minutes). So the next step is,
2nd Step: The result of the 1st step / no. of working hours per day.
3rd Step: The result of the 2nd Step X no. of O.T hours worked.
For example: Basic = 3500.00, No. of Days: 25, No. of working hours: 8, O.T hours = 2. Then,
3500 / 25 / 8 * 2.
From India, Coimbatore
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Mr Debu, Over time is always calculated on hourly basis and on his basic and V D A (if applicable ) as gross contains many components such as H R A , incentive ,etc. Sita Ram Pandey
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SALARY SHEET CALCULATION.xls
Salary calculation.doc