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

Understanding How To Calculate Overtime

Profile Picture
By Author: Priya Singh
Total Articles: 4
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.


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: 47Word Count: 465See All articles From Author

Add Comment

Service Articles

1. How Online Plant Nursery Is Ideal For Your Garden? Know Your Plants
Author: David Miller

2. What Is Telemedicine & How Has Video Conferencing Transformed The Healthcare Sector?
Author: iFMeets

3. Five Tips To Create Eye-catching Md Custom Signs
Author: Joe Gass

4. Top 3 Myths And Misconceptions About Sales Crm Application
Author: mohit gupta

5. Build Your Own Cryptocurrency Mlm Software | Technoloader
Author: technoloader

6. Why Is It Mandatory To Certify With Iso 14001?
Author: John Mills

7. A Complete Guide On The Mosquito Control
Author: sadguru

8. Is Cloud Storage The Right Solution To Backup Your Photos?
Author: ifcloud

9. Iso 21001: Standard For Education Providers
Author: Punyam Acadmey

10. Flooring Products
Author: Dutco Tennant LLC

11. 5 Things Everyone Gets Wrong About How To Increase Sales
Author: OneRing

12. Searching And Evaluating Good News Portal – The Inside Of South Korea Stock Market
Author: Rafael Thomas

13. How To Start An Amazon Business?
Author: Cage Nicolas

14. Well-trained Interstate Removalists Will Handle The Goods Professionally
Author: RemovalistsNSW

15. Vashikaran Specialist Astrologer In Mysore | Black Magic Specialist
Author: vasudeva

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