Wages And Overtime Wages Calculation

Dear seniors,

Our one employee's gross salary is Rs. 10,000 per month. They are working 12 hours a day. How can we calculate the per-day salary and overtime salary as per the Factories Act of 1948? Please check the following and kindly provide the correct calculation:

(I) One day salary calculation

(A) Rs. 10,000 / 26 = Rs. 384.6 per day

(B) Rs. 10,000 / 30 = Rs. 333.33 per day,

(C) February month Rs. 10,000 / 28 = Rs. 357.14

(D) January month Rs. 10,000 / 31 = Rs. 322.58 per day

(E) Shall we divide the gross salary as per every calendar month days.

(II) Overtime Salary calculation for One hour

(A) [Rs. 10,000 / (26 x 8)] x 2 = Rs. 96.15 per hour

(B) [Rs. 10,000 / (30 x 8)] x 2 = Rs. 83.33 per hour

(C) [Rs. 10,000 / (28 x 8)] x 2 = Rs. 89.28 per hour

(D) [Rs. 10,000 / (31 x 8)] x 2 = Rs. 80.64 per hour

(E) Shall we divide the gross salary as per every month calendar days, then divide by 8 and multiply by 2.

Which calculation is correct for the above per day and hourly wages calculation?

From which calculation will PF be deducted at 12% from the employee's salary? Otherwise, will PF be deducted at 12% from the employee's basic salary? Is PF deduction applicable to overtime wages or not?

Can we calculate overtime salary from the basic salary instead of the gross salary? Can we calculate a 12% PF deduction from the basic salary instead of the gross salary? Please clarify our doubts.

Thanks with Regards,

Thirumurugan

Dear Thirumurugan,

You have not mentioned the type of establishment. The normal working hours per day are 8 hours only. However, depending on the type of establishment, there is variation. For instance, in the case of Factories and Motor Transport Establishments, it is 9 hours per day. Similarly, overtime hours have their daily and weekly ceilings. Therefore, as a routine practice, you cannot expect 12 hours of work per day, including overtime.

I, Vivek Singh, worked at Pvt Ltd Company since April 1, 2006, and on January 15, 2016, I resigned. The company accepted my resignation. However, my Full and Final settlement (FNF), 15 days' salary, earned leave of 40 days, gratuity, and bonus are still pending.

When I called, I was informed that it would be cleared in the next 3 to 4 days, but the process has not been initiated. I have emailed the HR and Managing Director multiple times regarding this matter, but there has been no response. The HR only advised me that the FNF settlement takes some time in every firm.

Please advise me on what steps I can take next.

Dear Umakanthan.M,

My company's nature of work involves transferring coal from the unloading point to the power plant.

Regards,
T. Thirumurugan