Calculation Of OT

Dear Senoirs
Can any of you help me on how to calculate OT of the employees.
A present:
We have a cards system, where in the employees write their details of in & out timing with signature everyday and this is submitted to HR at the end of every month.
based on this the extra hours worked are taken as OT.
Is there any better way of recording the OT ?
can anyone help me with a better way or may be a simple solution to this.?
regards
Fay

Dear Fay
OT is calculated based on Gross Salary. e.g.
'A' has worked for 20 extra hours during the month. His gross Salalry p.m. is Rs.2000 so what would be his OT.
2000/26 =76.92 salary per day
76.92/8=9.61 salalry per hour
9.61x2x20=384.40 OT of Mr. 'A' for 20 hrs.
Normally OT is given double as per factory act 1948.
Hope this solves your problem.
In case of maintaining your OT record either your should go for proper pay roll software or manual record can be generated.
sameer

Dear Sameer
I am looking out for a way in which the OT hours calcuations will be simplified,
and this will not wrk in the pay roll software as it includes Temporary & permanent employees.

Be careful; you are supposed to only consider Basic + DA(if applicable) while computing for OT. Rest all components are not to be considered.
As far as the procedure for calculating OT is concerned, please ask for a written approval from the concerned employee's supervisor (duly acknowledged by the Dept. Head) before going ahead calculating the OT for the extra hours the employee has put in. Also, ensure that this is put up during Manpower planning discussion with the Functional Head. If it's just seasonal or temporarily requirement, it's ok. But if the requirement is due to expansion, it's better to get in more people.
Thirdly, payment done by way of OT is fully taxable.

Dear All
To be more specific about my problem i want a procedure on how to follow the OT recording, and not OT calculations.
Please reply at the earliest, if i get a suitable solution can implement it from jan 2008
So please help.
It is very very very urgent.
Regards
Fay

Hi ,
Why don't you prepare an excel sheet to record the data.
You can easily calculate OT hrs, OT amount by using excel functions. It will take some time initially (to prepare the sheet and framing necessary formulas) but once you prepare the setup, there won't be any further trouble...
We were following this system in my previous job.
Regards
Rupali

Hi Rupa
At present we have cards issued to all the employees , they write in thier in time sign & write their out time sign, and at the end of the month dept. head signs the OT card & sends the cards for OT hours calculations.
I want a some simple rpocedure for this is there any better & easier way to do this??
urgent help required.

Dear Fay,
I am not in HR but done PGDM in HR and have work exp.
I think the better way to maintain the OT is to keep the report of loggedout time from the system.
There should be some ID given to the employees and when logged in to the system and loggedout time should be maintained.So that you can find the better woking hours(OT) with productivity.
If you are using the method of sign in and sign out time in the register,it might creat some varience of which you are not aware of.Anyone can take the benifits..
In our org,the software on which we work are providing the login time , logged out time.we called it as TOS(time on system)including breaks.
If you dont have any software like this,then Team leader should keep the track of these things and send it to HR on Month End.
I think, it will help you...
Prativa

Hi,
Temp. staff - they must be reporting to someone.
The supervisor should keep the time out time from the system and keep a track of it.
Take the reports from them as well as from the register so that u'll know the varience.
Prativa