123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Service >> View Article

Understanding How To Calculate Overtime

Profile Picture
By Author: Priya Singh
Total Articles: 5
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Overtime laws in India: Overtime calculation for wage earners in India is done as per the factories act, 1948. As per section 59 of the Factories Act, wage earners should be paid double the rate of his ordinary wages for every hour of overtime work.

Hence if a worker was earning Rs60 as ordinary wages per hour, he will be earning Rs120 for overtime work. This has also been mentioned in the Minimum Wage act and rules act and the State Shops and Commercial Acts.

Calculation:

In order to calculate the overtime for one hour of wages, then we should divide the total wages earned in a month by 26 (number of days of work in a month).

This would give us the wage earned in a day. Then divide the wages earned in a day by 8 (total number of hours in a day).

Then you will arrive at the wage earned per day. So, if you want to pay overtime to your workers, you will need to provide double of the ordinary wage for an hour.

US laws:

The laws in US for overtime are similar. An employer needs to pay the worker 1.5 times the ordinary wage rate. Hence if a worker earns 6 dollars every hour, during overtime he needs to be paid 9 dollars.

British laws:

Britain however does not have any special laws on overtime. An employer does not need to pay his workers any over time. He simply needs to ensure that his workers get a minimum pay. If there are any overtime bonuses, then it is mentioned in the contract.

Europe Laws:

European laws on overtime is a little more complicated. The law states that if an employee has worked 138 hours over a period of 4 months, 250 hours per year over statutory threshold of 40 hours (per week), the he is eligible for overtime.

For the first two hours the employee does an over time, he or she gets 50% of the ordinary wages. For every hour put in beyond the first two hours, the employee gets 100% raise in overtime.

Australia laws:

Australian laws are a mix of US and UK laws. If the workers are represented by a labour Union, then the employer may have to pay 1.5 times the ordinary wage.

If the employers want to pay a rate that is above or below the norm, then a special provision is included in a contract between the employer and the employee.

This blog should have given you a summary of how laws in various countries differ for overtime pay. Hence, the next time you hire a person working overseas for your company, make sure you check the local overtime laws. For more details on overtime pay in other countries, please visit https://www.easysourceindia.com/

More About the Author

Fashion Blogger : I like to write about latest fashion trends

Total Views: 60Word Count: 465See All articles From Author

Add Comment

Service Articles

1. Reason Why Should Use Customized Curtain
Author: stagecurtains

2. How To Choose The Best Auditorium Carpet?
Author: stageworks

3. Instant Payday Loans Canada: The Best Lender For You
Author: Payday Rooster

4. Top Five Packing And Moving Tips To Make Your Shifting Easy
Author: Govind Sandil

5. Utilize Bim Technology Solutions To Improve Workflow Efficiency
Author: BIMEngus

6. Understanding Forex Trading Options For Retailers - Trade And Profit With Online Platforms
Author: John Miller

7. Improving Cybersecurity: Some Strategies
Author: Appsian

8. Ifcloud Storage Solutions Make Syncing And Sharing Data Easier
Author: ifcloud

9. Moving Companies - A One-stop For All Your Relocation Needs
Author: movguru

10. All You Need To Know About Gold Loan 2020
Author: gopu kumar

11. Spin Flash Dryers Are Used For Drying A Wide Range Of Products
Author: SVAAR Process

12. Funeral Services For Your Departed Dear Ones
Author: Janie Singleton

13. 11 Reasons Why You Need An App For Your Residents Association
Author: ONNE

14. What Should Be The Right Age To Get Married In India?
Author: Ajay Agarwal

15. How To Best House Cleaning Company
Author: Essential Cleaning Services limited.

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: