Overtime Calculation under The Karnataka Shops and Commercial Establishments Act

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1

Dear All,
Could you please suggest the overtime calculation formula under the Karnataka Shops and Commercial Establishments.
Is wages means Basic Salary + DA or Fixed Gross salary.
Is no of days 26 or 30 days.

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2

Hey @Sadanand,

In Karnataka, as per the Karnataka Shops and Commercial Establishments Act, overtime is calculated as follows:

  1. Wages: For the purpose of calculating overtime, wages generally include Basic Salary and Dearness Allowance (DA).
  2. Normal Working Days: The standard workweek in most establishments is 6 days, totaling 48 hours. This means the average working hours per day are 8.
  3. Overtime Calculation Formula: Overtime is calculated at twice the ordinary rate of wages. The formula for calculating overtime payment for each day of overtime is:Overtime Pay = (Basic Salary + DA) / Total Weekly Work Hours * 2 * Number of Overtime HoursTotal Weekly Work Hours = Number of Normal Working Days * Average Daily Work Hours

Please note that specific establishment rules and terms of employment may apply, so it’s advisable to refer to the Karnataka Shops and Commercial Establishments Act or consult with your legal advisor or HR department for accurate information tailored to your situation.

Hope this will help.

Priya

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Thank you for your inputs. Much appreciated!!

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5

Under the Karnataka Shops and Commercial Establishments Act, overtime is typically calculated at twice the ordinary rate of wages.

Wages generally refer to Basic Salary + DA (not Fixed Gross Salary).
For calculation purposes, the number of working days is usually taken as 26 days (excluding weekly offs).

To simplify and automate your compliance, you can use the Workstatus Overtime Calculator. It ensures accurate overtime tracking and helps you stay aligned with legal standards without the manual hassle.

Try it here: Workstatus Overtime Calculator

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