Seeking Advice on Reducing Overtime Wages
I am working in a process industry that operates 24 hours a day. Our management has decided to reduce overtime wages. Can anybody help me with cluster manning to reduce overtime wages or suggest any other techniques for reducing overtime wages?
Regards,
Amudha
From India, New Delhi
Acknowledge(0)
Amend(0)
I am working in a process industry that operates 24 hours a day. Our management has decided to reduce overtime wages. Can anybody help me with cluster manning to reduce overtime wages or suggest any other techniques for reducing overtime wages?
Regards,
Amudha
From India, New Delhi
Acknowledge(0)Amend(0)
If any company pays OT as per statutory regulations, OT can be a burden for companies. Take the average OT payments for the last 3 or 6 months and divide them into ratios. For example, if the OT payments are as follows: Jan: 25000, Feb: 38000, Mar: 41000, Apr: 19000, May: 20000, and June: 39000, then the average is 30334. If the minimum wage in your industry is 5000/-, the ratio will be 6.
It is important to consider peak timings, total OT hours, and any gaps in scheduling. In the example provided, instead of paying OT, if you recruit 6-7 manpower, the total man-hours in a month would be 1404 hours, which may resolve the issue of OT.
Hope this response clarifies the situation.
Regards,
Karthik
From India, Vijayawada
Acknowledge(1)
Amend(0)
80It is important to consider peak timings, total OT hours, and any gaps in scheduling. In the example provided, instead of paying OT, if you recruit 6-7 manpower, the total man-hours in a month would be 1404 hours, which may resolve the issue of OT.
Hope this response clarifies the situation.
Regards,
Karthik
From India, Vijayawada
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Process flow for Updation of Aadhar Number.pdf
2-RECRUITMENT PROCESS-2.doc