Overtime Wages

Overtime Wages- Industrial employees are entitled to additional payment for work done beyond the normal working hours. There are two sets of rules applicable to overtime wages.

• Overtime Wages under Departmental Rules: In the case of Day Workers, the overtime is paid at the rate of Basic Pay + Dearness Allowances + City Compensatory Allowance + Personal Pay + Special Pay + Pension to the extent as applicable, divided by 200for each hour of overtime worked. The hourly rate is the same for the work done both in Day & Night Shift. In the case of Piece Workers, again there are two sets of rules for Departmental rules. It is calculated @ Basic Pay (alone)/200 per hour in the day shift. For working in the night shift, an additional element known as Night Shift Bonus is also added. This is calculated for half an hour for each hour of overtime worked under departmental rules @ (Basic Pay + Dearness Allowances + City Compensatory Allowance)/200.
• Overtime Wages under Factories Act, 1948: For work done beyond 9 hours a day or 48 hours a week, there are two sets of rules – one for the day worker and the other for the piece worker. Day Worker: Hourly rate of payment which are applicable equally in the day shift as well in the night shift is calculated at the rate = twice the pay & allowances/200.

  Piece Worker: Hourly rate of payment in the day shift is calculated at the rate = twice the
  pay & allowances/200. In the night shift, the same becomes = (twice the pay + pay/4 +
  allowances)/200.

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