Hi How to calculate double pay on national holidays in India. If employee annual gross salary is 7,96,673 /- Please help with formula. Regards,
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2From India
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Yes we pay salary on monthly basis
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From India
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(Fact Check Failed/Partial)-The user reply is incorrect. In India, double pay on national holidays is calculated based on daily wages, not monthly salary. The formula is: (Monthly Gross Salary / 30) x 2.
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That I know, but when you post such queries, it should be monthly salary and not the annual salary or the CTC that matters for us.
Double the rate means overtime wages and nothing else. You can follow the same formula that is applied in calculating overtime wages for paying wages for holiday working. If you pay for 30 days, the holidays would automatically be included in that 30 days. In such circumstances, you have to add one day more as overtime wages.
Normally, basic wages and DA will be considered for overtime wages. But if you have components like daily allowance, conveyance allowance which are paid on attendance, that should also be paid when an employee is called to work on holidays.
From India, Kannur
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Double the rate means overtime wages and nothing else. You can follow the same formula that is applied in calculating overtime wages for paying wages for holiday working. If you pay for 30 days, the holidays would automatically be included in that 30 days. In such circumstances, you have to add one day more as overtime wages.
Normally, basic wages and DA will be considered for overtime wages. But if you have components like daily allowance, conveyance allowance which are paid on attendance, that should also be paid when an employee is called to work on holidays.
From India, Kannur
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(Fact Check Failed/Partial)-The user's reply is incorrect. When calculating double pay for national holidays in India, the annual gross salary is not relevant. Double pay for holidays is usually calculated based on the daily wage rate or monthly wage rate, depending on the company's policy. It's important to refer to the specific labor laws and company policies for accurate calculations.
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Is this the correct formula?
Monthly Gross Salary * 12 (No. of calendar months) / 365 days / 8 (Total working hours per day) * No. of hours worked.
For example, let's take the Gross Salary as 20,000/- for the staff who worked for 5 hours on 15th August (Independence Day). Then, the above formula will work as below:
20000 * 12 / 365 / 8 * 5 = Holiday Pay (Double Pay)
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Monthly Gross Salary * 12 (No. of calendar months) / 365 days / 8 (Total working hours per day) * No. of hours worked.
For example, let's take the Gross Salary as 20,000/- for the staff who worked for 5 hours on 15th August (Independence Day). Then, the above formula will work as below:
20000 * 12 / 365 / 8 * 5 = Holiday Pay (Double Pay)
From India
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(Fact Check Failed/Partial)-The formula provided is incorrect for calculating double pay on national holidays in India. It should be (Monthly Gross Salary / 30) * 2 for a day's double pay.
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Kalpana ji,
Aap aisi kalpana kijiye ki Karmachari ka masik vetan 28000 hai. Agar aap unako farvari mahine me 5 ghanteka adhik kamka vetan dena chahogi to Nimna likhit prayog ka istemal kijiye.
Prati maah vetan 28000/28 no. of days of the month=1000 prati din vetan/8=125 prati ghanta vetan. Ab jitane bhi ghante adhik kam ho use Dwigunit kijiye aur adhik vetan ka mulya nikaliye. Udaharan 125*4*2=1000 (4 ghante ka adhik vetan = 1000)
This is how overtime is calculated. If you want to keep it simple, divide the monthly salary by 30 to get the per-day salary, then multiply the number of extra hours (OT) by double and divide by 8. If you only pay minimum wage to workers, the divisor should be 26 rather than 30 or 31.
Regards,
Suresh
From India, Thane
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Aap aisi kalpana kijiye ki Karmachari ka masik vetan 28000 hai. Agar aap unako farvari mahine me 5 ghanteka adhik kamka vetan dena chahogi to Nimna likhit prayog ka istemal kijiye.
Prati maah vetan 28000/28 no. of days of the month=1000 prati din vetan/8=125 prati ghanta vetan. Ab jitane bhi ghante adhik kam ho use Dwigunit kijiye aur adhik vetan ka mulya nikaliye. Udaharan 125*4*2=1000 (4 ghante ka adhik vetan = 1000)
This is how overtime is calculated. If you want to keep it simple, divide the monthly salary by 30 to get the per-day salary, then multiply the number of extra hours (OT) by double and divide by 8. If you only pay minimum wage to workers, the divisor should be 26 rather than 30 or 31.
Regards,
Suresh
From India, Thane
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(Fact Check Failed/Partial)-The user's reply contains incorrect information regarding the calculation of overtime pay and does not address the calculation of double pay on national holidays in India. The correct method involves specific rules for national holidays and double pay calculations as per the Shops and Establishments Act or state-specific laws.
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The formula is correct, but why should you take annual salary? You can take monthly salary, i.e., 20000, divide it by 30, and then divide it by 8 to get the hourly rate.
When you pay salary, you will be paying 30 days' salary to all, including those who have availed the holidays. Right? Then 30 days' salary means and includes one day of holiday pay. For those who work on a holiday, when you have to pay double the rate, the single rate is already given, and therefore, you can pay an additional amount at the single rate. Since the employee who has been called to work on a holiday will be getting a compensatory holiday also, this will satisfy the legal obligations.
From India, Kannur
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When you pay salary, you will be paying 30 days' salary to all, including those who have availed the holidays. Right? Then 30 days' salary means and includes one day of holiday pay. For those who work on a holiday, when you have to pay double the rate, the single rate is already given, and therefore, you can pay an additional amount at the single rate. Since the employee who has been called to work on a holiday will be getting a compensatory holiday also, this will satisfy the legal obligations.
From India, Kannur
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(Fact Check Failed/Partial)-The user's reply is incorrect. When calculating double pay for national holidays in India, the annual salary should be considered. The calculation should be based on the annual salary divided by the number of working days in a year. This ensures that the employee receives the correct compensation as per labor laws.
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Dear Suresh Sir,
If any member of our team is not able to understand the issue properly, then you can provide a follow-up reply for better comprehension. You are a valued contributing member of Cite-HR; therefore, I would request you to please maintain basic courtesy.
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If any member of our team is not able to understand the issue properly, then you can provide a follow-up reply for better comprehension. You are a valued contributing member of Cite-HR; therefore, I would request you to please maintain basic courtesy.
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(Fact Check Failed/Partial)-[The user reply does not address the original query regarding calculating double pay on national holidays in India.]
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Dear Alok Ji,
I simply simplified the calculation method. I have no other intention because our learned member, Mr. Madhu T K, has already elaborated and explained the case in a simple manner.
I apologize if I am incorrect.
Regards,
Suresh
From India, Thane
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I simply simplified the calculation method. I have no other intention because our learned member, Mr. Madhu T K, has already elaborated and explained the case in a simple manner.
I apologize if I am incorrect.
Regards,
Suresh
From India, Thane
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(Fact Check Failed/Partial)-The user reply does not provide any specific information or clarification on how to calculate double pay on national holidays in India. Therefore, an amendment is needed to address the original query accurately.
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In this case, the question is how to arrive at daily wages from monthly wages. There are organizations that determine daily wages by dividing 30 of the monthly wages, irrespective of the month. Others calculate by dividing monthly wages by the number of days in the particular month or using innovative formulas like monthly gross x 12 / 365. In my opinion, the last method takes into consideration the varying days in different months. As far as my knowledge goes, there is no law or rule to guide the calculation; it depends on the organization's policy.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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(Fact Check Failed/Partial)-The user reply is incorrect. In India, double pay on national holidays is calculated based on daily wages, not monthly salary.