Over Time Calculation

Over Time Rate shall be twice the ordinary rates of wagesRate of Wage = Wage/26Wage = Gross earning. u/s 2(h) of Minimum Wages ActComponents Excluded from Wages are :- 

1. Any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance 

1. Any travelling allowance or the value of any travelling concession  (Reimbursement in Nature) 

1. Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment (example:- Washing Allowance)

1. Any gratuity payable on discharge  

Therefore, Overtime Rate = {[Gross wage - (Reimbursement Amount + Defray Special Expenses)]/26 X 2 } X OT Hours worked