Greeting Seniors, Can Anyone in this forum tell me the How to calculate Wages for staff for overtime work done? Hopping for favouable response. Regards, Ritu
From India, Lucknow
From India, Lucknow
Dear Ritu,
Calculation of ot wages is done on the model you adopt while paying them i.e. wheather you have appointed you labour on peace wage or on daily basis or on hour basis if it is done on daily basis or hourly basis than it is as simple as calculation of converting entire wages into hours ,but if it is peice wage system than yes conversion is done on the basis of oeices to be completed in one day.
ideal working is 8 hours,so anything exeeding it as per law attracts ot.
From India, Gurgaon
2Calculation of ot wages is done on the model you adopt while paying them i.e. wheather you have appointed you labour on peace wage or on daily basis or on hour basis if it is done on daily basis or hourly basis than it is as simple as calculation of converting entire wages into hours ,but if it is peice wage system than yes conversion is done on the basis of oeices to be completed in one day.
ideal working is 8 hours,so anything exeeding it as per law attracts ot.
From India, Gurgaon
Dear Ritu,
I think it is depend on company policy. If it is related to workers than you have to pay double rate of wages but for staff you can discuss with your accounts department. Normally companies don't give payment for staff for overtime. They provide compensatory leave. but many companies pay overtime to staff proportionately to their normal salary.
Thanks
From India, Gurgaon
I think it is depend on company policy. If it is related to workers than you have to pay double rate of wages but for staff you can discuss with your accounts department. Normally companies don't give payment for staff for overtime. They provide compensatory leave. but many companies pay overtime to staff proportionately to their normal salary.
Thanks
From India, Gurgaon
Dear Kumar H P the formula you have wrote is not so clear, please clarify it. No of over time hours worked is it the total OT worked by the worker in a month or something else :?:
From India, Delhi
From India, Delhi
Yes.
[(((Basic+ DA) * No of Over time Hours worked)/( No of Working days * No of Working Hours)) * 2]
Look at this example
Basic + DA = Rs. 2440
Total no of Overtime hours worked in a month - 12 hours
Total no of Company working days in a month - 26 ( in some cases 30)
Total no of working hours - 8 hours
Now OT is calculated as below:
[(2440 X 10)/(26 X 8 )] X 2 = 234.6
Hope it is clear now...
Truly Yours,
Kumar.H.P
From Hong Kong
[(((Basic+ DA) * No of Over time Hours worked)/( No of Working days * No of Working Hours)) * 2]
Look at this example
Basic + DA = Rs. 2440
Total no of Overtime hours worked in a month - 12 hours
Total no of Company working days in a month - 26 ( in some cases 30)
Total no of working hours - 8 hours
Now OT is calculated as below:
[(2440 X 10)/(26 X 8 )] X 2 = 234.6
Hope it is clear now...
Truly Yours,
Kumar.H.P
From Hong Kong
DEAR RITU
I THINK THE CALCULATION OF WAGES IS THAT
TOTAL SALARY/WAGES/NO. OF DAYS*ACTUAL WORKING DAY WITH LEAVES.
OVER TIME CALCULATION
TOTAL SALARY/WAGES/240 (FOR THE MONTH OF 30DAYS) & 248 FOR (THE MONTH OF 31 DAYS) * TOTAL HOURS
I THINK YOU ARE SATISFY MY ANSWER IF I AM WRONG PLEASE TELL ME
THANKS
WITH REGARD
NEHA
From India, Faridabad
I THINK THE CALCULATION OF WAGES IS THAT
TOTAL SALARY/WAGES/NO. OF DAYS*ACTUAL WORKING DAY WITH LEAVES.
OVER TIME CALCULATION
TOTAL SALARY/WAGES/240 (FOR THE MONTH OF 30DAYS) & 248 FOR (THE MONTH OF 31 DAYS) * TOTAL HOURS
I THINK YOU ARE SATISFY MY ANSWER IF I AM WRONG PLEASE TELL ME
THANKS
WITH REGARD
NEHA
From India, Faridabad
Hi everybody.. Can someone guide me in payment of double wages for working on national holidays.. in the current practice in my organisation they pay twice the ordinary rate of wage plus the ordinary wages.. Is this mandatory to pay thrice the ordinary rate of wages for working on national holidays under Shops and Establishment Act...???
Kindly Clarify
Subhashinee L
From India, Madras
Kindly Clarify
Subhashinee L
From India, Madras
HEllo Kumar
what we do when no day is 31 or 28 how i calculate oT hours can we divided by 26 (Incase of 30 days in month ) or what we do where when no of days is 31 ???
[(((Basic+ DA) * No of Over time Hours worked)/( No of Working days * No of Working Hours)) * 2]
Look at this example
Basic + DA = Rs. 2440
Total no of Overtime hours worked in a month - 12 hours
Total no of Company working days in a month - 26 ( in some cases 30)
Total no of working hours - 8 hours
Now OT is calculated as below:
[(2440 X 10)/(26 X 8 )] X 2 = 234.6
Hope it is clear now...
Truly Yours,
Kumar.H.P[/QUOTE]
From India, Ahmadabad
what we do when no day is 31 or 28 how i calculate oT hours can we divided by 26 (Incase of 30 days in month ) or what we do where when no of days is 31 ???
[(((Basic+ DA) * No of Over time Hours worked)/( No of Working days * No of Working Hours)) * 2]
Look at this example
Basic + DA = Rs. 2440
Total no of Overtime hours worked in a month - 12 hours
Total no of Company working days in a month - 26 ( in some cases 30)
Total no of working hours - 8 hours
Now OT is calculated as below:
[(2440 X 10)/(26 X 8 )] X 2 = 234.6
Hope it is clear now...
Truly Yours,
Kumar.H.P[/QUOTE]
From India, Ahmadabad
Hi all
Ot to be paid on Basic and DA and not on any other allowances paid to the employee.
Ot to be paid double the wage i.e. (Basic + DA)
Calculation
Ot = Basic + DA /26 days = per day wage
Per day wage / 8 Hrs= per Hr. wage
Per Hr wage X OT Hrs X 2 times = OT amount to be paid.
Ot to be paid 2 times the Hr. wages as per the Factory Act in force.
Ot is not only to the factory workers it is to be paid to even staff of middle management carder, who put up there service for extra work on any given days of the month.
Some organisation fix a lumpsum allowance to the staff for their extra duties
Mohan Rao
Manager HR
From India, Visakhapatnam
Ot to be paid on Basic and DA and not on any other allowances paid to the employee.
Ot to be paid double the wage i.e. (Basic + DA)
Calculation
Ot = Basic + DA /26 days = per day wage
Per day wage / 8 Hrs= per Hr. wage
Per Hr wage X OT Hrs X 2 times = OT amount to be paid.
Ot to be paid 2 times the Hr. wages as per the Factory Act in force.
Ot is not only to the factory workers it is to be paid to even staff of middle management carder, who put up there service for extra work on any given days of the month.
Some organisation fix a lumpsum allowance to the staff for their extra duties
Mohan Rao
Manager HR
From India, Visakhapatnam
Dear H.P.
Section 59 of the Factories Act says Overtime wages will be calculated @ 200% of Basic Wages + All the allowances to which an employee is entitled to + cash equivalent of food concessions excluding Bonus & Overtime wages. This means that any other allowance also will form part of OT calculation suppose : medical allowance, uniform allowance, House Rent Allowance and so on. Can you through some light w.r.t. section 59.
From India, Delhi
Section 59 of the Factories Act says Overtime wages will be calculated @ 200% of Basic Wages + All the allowances to which an employee is entitled to + cash equivalent of food concessions excluding Bonus & Overtime wages. This means that any other allowance also will form part of OT calculation suppose : medical allowance, uniform allowance, House Rent Allowance and so on. Can you through some light w.r.t. section 59.
From India, Delhi
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