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
5From India, New Delhi
Dear Mr.Paul,
Vide section 59 of factories act,1948, contemplates that if a worker works in a factiory for more than 9 hours in any day or for more than forty eight hours in any week he shall, in respect of overtime work, be entitled to wages @ twice his ordinary rate of wages.
Here wages means the basic wages plus such allowance including the cash equivalent. BUT most of the company pay only twice the basic.
for instance if a worker works for 5hours OT and his basic is Rs.1000/- per month the calculation would be as follows:
Basic per month / 30( to arrive at per day basic)/8( to arrive at per hour basic)* 5 ( no hours of OT).
hope it is clear
Regards
Michael Nicholas
From India, Madras
Vide section 59 of factories act,1948, contemplates that if a worker works in a factiory for more than 9 hours in any day or for more than forty eight hours in any week he shall, in respect of overtime work, be entitled to wages @ twice his ordinary rate of wages.
Here wages means the basic wages plus such allowance including the cash equivalent. BUT most of the company pay only twice the basic.
for instance if a worker works for 5hours OT and his basic is Rs.1000/- per month the calculation would be as follows:
Basic per month / 30( to arrive at per day basic)/8( to arrive at per hour basic)* 5 ( no hours of OT).
hope it is clear
Regards
Michael Nicholas
From India, Madras
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Query.doc
Overtime.ppt
OverTime.xls