Dear Friends
I am working in a Logistics company, and a dispute has arised regarding the wages to be taken into account in calculaiton of Over Time Wages.
My service provider has provided me a judgment of Bombay High court regarding the inclustion of HRA in calculation of Over Time wages.
And most importantly in Factories Act 1948 Sec -59 sub Sec 2 reads, Ordinary rates of wages means " the basic wages plus such allowances including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to but does not include a bonus and wages for overtime.
Plus such allowances means only the DA / special allowance or all such allowances being given to the worker.
Please send me clarification to this as I am confused and till now my understanding for the calculation of OT only Basic & DA has to be taken into account,
It is urgent !
Sanjeev
From India, Pune
2I am working in a Logistics company, and a dispute has arised regarding the wages to be taken into account in calculaiton of Over Time Wages.
My service provider has provided me a judgment of Bombay High court regarding the inclustion of HRA in calculation of Over Time wages.
And most importantly in Factories Act 1948 Sec -59 sub Sec 2 reads, Ordinary rates of wages means " the basic wages plus such allowances including the cash equivalent to the advantage accruing through the concessional sale to workers of food grains and other articles as the worker for the time being entitled to but does not include a bonus and wages for overtime.
Plus such allowances means only the DA / special allowance or all such allowances being given to the worker.
Please send me clarification to this as I am confused and till now my understanding for the calculation of OT only Basic & DA has to be taken into account,
It is urgent !
Sanjeev
From India, Pune
The HC judgment is not available for reference. Therefore, I am unable to direct you on the basis of the judgment. Please go through the interpretation of the court regarding HRA and the manner in which the HRA was paid in the relevant case. However, if you follow the Factories Act, Overtime Wages shall be calculated on the Basic + DA/ special Allowance only.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Method of calculation of wages.doc