How is Overtime calculated above normal working hours?


How is Overtime calculated hourly above normal working hours? Any difference in calculation in new wage code?

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As per the Factories Act 1948, every adult (a person who has completed 18 years of age) cannot work for more than 48 hours in a week and not more than 9 hours in a day. According to Section 51 of the Act, the spread over should not exceed 10-1/2 hours.

The company’s overtime policy must clearly state the reporting time and working hours for all employees along with provisions relating to leaves and holidays. The HR policy must also include the company’s policy about any remuneration for the extra time any employee works.

The overtime work must be voluntarily taken up by the employee and not forced through an involuntarily or fraudulently signed agreement.

Under the overtime payment rules in India, overtime wages are paid in two ways – either on a per hour rate or a per piece rate in factories.

In the per hour or hourly rate, the per hour wage of an employee is calculated and double the amount is paid for every extra working hour.
In per piece method, an employee is paid overtime for every extra piece made during the overtime period.

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