Dear Seniors,
Can any of you help me on how to calculate overtime for the employees?
Currently, we use a card system where employees record their in and out timings along with their signatures every day. These details are then submitted to HR at the end of each month. Overtime is calculated based on the extra hours worked.
I am wondering if there is a more efficient way to record overtime. Could anyone suggest a better method or perhaps a simpler solution to this?
Regards,
Fay
From Kuwait
Acknowledge(0)
Amend(0)
3Can any of you help me on how to calculate overtime for the employees?
Currently, we use a card system where employees record their in and out timings along with their signatures every day. These details are then submitted to HR at the end of each month. Overtime is calculated based on the extra hours worked.
I am wondering if there is a more efficient way to record overtime. Could anyone suggest a better method or perhaps a simpler solution to this?
Regards,
Fay
From Kuwait
Acknowledge(0)Amend(0)
Dear Fay,
Overtime (OT) is calculated based on Gross Salary. For example, 'A' has worked for 20 extra hours during the month. His gross salary per month is Rs. 2000. Therefore, what would be his OT?
Calculations:
- 2000 / 26 = 76.92 salary per day
- 76.92 / 8 = 9.61 salary per hour
- 9.61 x 2 x 20 = 384.40 OT of Mr. 'A' for 20 hours.
Normally, OT is given double as per the Factory Act of 1948. I hope this solves your problem.
In terms of maintaining your OT record, you should consider using proper payroll software or generating a manual record.
Sameer
From India, Pune
Acknowledge(0)Amend(0)
Overtime (OT) is calculated based on Gross Salary. For example, 'A' has worked for 20 extra hours during the month. His gross salary per month is Rs. 2000. Therefore, what would be his OT?
Calculations:
- 2000 / 26 = 76.92 salary per day
- 76.92 / 8 = 9.61 salary per hour
- 9.61 x 2 x 20 = 384.40 OT of Mr. 'A' for 20 hours.
Normally, OT is given double as per the Factory Act of 1948. I hope this solves your problem.
In terms of maintaining your OT record, you should consider using proper payroll software or generating a manual record.
Sameer
From India, Pune
Acknowledge(0)Amend(0)
Dear Sameer I am looking out for a way in which the OT hours calcuations will be simplified, and this will not wrk in the pay roll software as it includes Temporary & permanent employees.
From Kuwait
Acknowledge(0)Amend(0)
From Kuwait
Acknowledge(0)Amend(0)
Be careful; you are supposed to only consider Basic + DA (if applicable) while computing for OT. Rest all components are not to be considered.
As far as the procedure for calculating OT is concerned, please ask for a written approval from the concerned employee's supervisor (duly acknowledged by the Dept. Head) before going ahead with calculating the OT for the extra hours the employee has put in. Also, ensure that this is brought up during Manpower planning discussions with the Functional Head. If it's just seasonal or a temporary requirement, it's okay. But if the need is due to expansion, it's better to hire more people.
Thirdly, payment made by way of OT is fully taxable.
From India, Mumbai
Acknowledge(0)Amend(0)
As far as the procedure for calculating OT is concerned, please ask for a written approval from the concerned employee's supervisor (duly acknowledged by the Dept. Head) before going ahead with calculating the OT for the extra hours the employee has put in. Also, ensure that this is brought up during Manpower planning discussions with the Functional Head. If it's just seasonal or a temporary requirement, it's okay. But if the need is due to expansion, it's better to hire more people.
Thirdly, payment made by way of OT is fully taxable.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear All,
To be more specific about my problem, I want a procedure on how to follow the OT recording, and not OT calculations. Please reply at the earliest. If I get a suitable solution, I can implement it from January 2008.
So please help. It is very, very urgent.
Regards,
Fay
From Kuwait
Acknowledge(0)Amend(0)
To be more specific about my problem, I want a procedure on how to follow the OT recording, and not OT calculations. Please reply at the earliest. If I get a suitable solution, I can implement it from January 2008.
So please help. It is very, very urgent.
Regards,
Fay
From Kuwait
Acknowledge(0)Amend(0)
Hi,
Why don't you prepare an Excel sheet to record the data? You can easily calculate OT hours and OT amounts by using Excel functions. It will take some time initially to prepare the sheet and formulate the necessary formulas, but once you set it up, there won't be any further trouble. We used this system in my previous job.
Regards,
Rupali
From India, Pune
Acknowledge(0)Amend(0)
Why don't you prepare an Excel sheet to record the data? You can easily calculate OT hours and OT amounts by using Excel functions. It will take some time initially to prepare the sheet and formulate the necessary formulas, but once you set it up, there won't be any further trouble. We used this system in my previous job.
Regards,
Rupali
From India, Pune
Acknowledge(0)Amend(0)
Hi Rupa,
At present, we have cards issued to all the employees. They write in their in-time sign & out-time sign, and at the end of the month, the department head signs the OT card & sends the cards for OT hours calculations. I want a simple procedure for this. Is there any better and easier way to do this? Urgent help required.
From Kuwait
Acknowledge(0)Amend(0)
At present, we have cards issued to all the employees. They write in their in-time sign & out-time sign, and at the end of the month, the department head signs the OT card & sends the cards for OT hours calculations. I want a simple procedure for this. Is there any better and easier way to do this? Urgent help required.
From Kuwait
Acknowledge(0)Amend(0)
Dear Fay,
I am not in HR but have completed PGDM in HR and have work experience. I think the better way to maintain the OT is to keep a record of logged-out time from the system. There should be some ID given to the employees, and when they log in to the system and log out, the time should be maintained. This way, you can determine the better working hours (OT) with productivity.
If you are using the method of sign-in and sign-out time in the register, it might create some variance of which you are not aware. Anyone can take advantage of it. In our organization, the software we use provides login time, log out time, and we refer to it as TOS (Time on System), including breaks.
If you don't have any software like this, then the Team leader should keep track of these details and send them to HR at the month end. I think it will help you.
Prativa
From India, New Delhi
Acknowledge(0)Amend(0)
I am not in HR but have completed PGDM in HR and have work experience. I think the better way to maintain the OT is to keep a record of logged-out time from the system. There should be some ID given to the employees, and when they log in to the system and log out, the time should be maintained. This way, you can determine the better working hours (OT) with productivity.
If you are using the method of sign-in and sign-out time in the register, it might create some variance of which you are not aware. Anyone can take advantage of it. In our organization, the software we use provides login time, log out time, and we refer to it as TOS (Time on System), including breaks.
If you don't have any software like this, then the Team leader should keep track of these details and send them to HR at the month end. I think it will help you.
Prativa
From India, New Delhi
Acknowledge(0)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.
OT Calculation.zip
OT CALCULATION.xls
Overtime Requisition Form(OT).docx