Overtime Policy

Hi All

In our company, we are planning to implement the overtime policy.

Can anyone please help with the template for the same?

Thank you
Sahiba

3 Likes

Dear Sahiba,

It is very simple. As per new Code of Wages 2020 Over Time should be paid double the regular wages. That means 2 times of per hour regular gross wage per hour over time.

Thanks,
Naga Kiran K

4 Likes

Hi Naga Kiran K

Thanks for the reply. I have the details with me as mentioned below.

Under Sec. 33 it is mentioned that for overtime wages are to be paid at the rate of twice the ordinary rates of wages of the worker. It mentions that the employer can take actual work on any day up to 9 hours in a 12 hours shift.
According to the law on minimum wages and rules, we have to divide the wage rate by 26 for calculating 8 hours (one day) of salary. … We must divide wages by 8 to one-day wages. So, if we take OT for one hour, we have to pay twice the salary for one hour.

I need the documented sample Overtime policy with all the required content that should be covered under this policy for reference.

Thanks
Sahiba

3 Likes

Hi @SAHIBA

Sharing some information from my end.

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.

Sample OT Policy is attached

OT.doc (59 KB)

Ref links: https://medium.com/@complyhr/overtime-policies-under-labour-law-in-india-f24f3361707b

  • Under Sec. 33 it is mentioned that for overtime wages are to be paid at the rate of twice the ordinary rates of wages of the worker. It mentions that the employer can take actual work on any day upto 9 hours in a 12 hours shift. But he must pay double the rates for any hour or part of an hour of actual work in excess of nine hours or for more than 48 hours in any week.
  • Sec. 14 of the Act mentions that any worker whose minimum rate of wages are fixed with wage period of time, such as by hour, by the day or by any such period and if a worker works more than that number of hours, it is considered to be overtime. In case if the number of hours constituting a normal working day exceeds the given limit, then the employer will have to pay him for every hour or for part of an hour for which he has worked in excess at the overtime rate.
3 Likes

Dear sahiba,

greythr has the following kinds of overtime policy that can be implemented.
We can set eligible policy and payout policies:

please do check the above and if the policies satisfy , please do raise a ticket for our support team to help you implement them

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