Dear Sir, I just want to know the way of calculation of OT under Maharashtra shop and establishment. Is it calculated on basic or gross.
Also wages need to divide by 26 or 30 days to calculate OT.
Anil Tyagi
From India, Delhi
Also wages need to divide by 26 or 30 days to calculate OT.
Anil Tyagi
From India, Delhi
Maharastra Shop Act, 2 questions....
(1) OT calculated on basic or Gross ?
Ans : OT shall be calculated on Basic + DA and not on Gross.
Reference - Sec 15 of MH Shop Act & Definition of wages under Payment of Wages Act
(2) Wages needs to be divided by 26 or 30 days ?
Ans : Generally it is 26, there is no legal bar for denomination. However, you can consider as per your company policy which should be same for all purposes and for all employees.
From India, Bangalore
17(1) OT calculated on basic or Gross ?
Ans : OT shall be calculated on Basic + DA and not on Gross.
Reference - Sec 15 of MH Shop Act & Definition of wages under Payment of Wages Act
(2) Wages needs to be divided by 26 or 30 days ?
Ans : Generally it is 26, there is no legal bar for denomination. However, you can consider as per your company policy which should be same for all purposes and for all employees.
From India, Bangalore
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SALARY SHEET CALCULATION.xls