### BEST OVERTIME CALCULATION PRACTICE IN PAKISTAN

Dear members, I have to present a report on best overtime calculation practices in pakistan that include overtime calculation techniques and addition of allowances in the calculation of overtime. What are the normal practices here. I request members to provide guidance. Thanks, Saleem

Umer Raza Bhutta• Nice discussion point. I think the best way is to go through the law. There is a calculation farmula which i can send you in email. Please mail your email ID.Muhammad Usman Muhammad Ayoob• Dear Saleem,best overtime practice in industries is calculate with month i.e. salary/month/8*hours, this formula entitled in around 70% industries,

in multinational firm or best firm calculate with this formula i.e. salary/26/8*2*hours.

these aboves are main formula.

Naveed Ansari• Well said Mr. Usmanbest calculation for OT i.e. salary/26/8*2*hours.

saleem uddin• Dear Mr. Usman,Naveed and Umar how u doin all. Thanks for precious guidance and contribution to the discussion. Hi Umar ! my email is saleem_dastagir@hotmail.comMuhammad Usman Muhammad Ayoob• Thanks Naveed AnsariAbid Hussain• That's right almost all companies (if go so) follow the above mentioned formula that issalary/26/8*2*number_of_hours_worked

Any query regarding to overtime is welcome

Babur Yaqub• The legal side of it can be covered by using (Gross Salary) / (30*8)*2 * OT Hours.Anyway, there are lots of companies which use the above mentioned formula as well. Regards

Mahboob Ahmed• Why are we dividing the salary by 26 ? and why not 30 or 31 ?Babur Yaqub• 30 - 4 weekend holidays = 26, hope that answers your question.For people we pay on daily basis (usually superannuated expert level individuals) we use the same sort of formula i.e. 30 - 8 weekends = 22 / 8. To the second part of your question, why not 31 i.e. because accounting month is set as 30.

Mahboob Ahmed• Vow we have two different options as per Naveed andAbid Hussain Gross Salary/26 and as per Babur Yaqoob Gross Salary/30 for legal covering ?????.Dear Friends, why do we have to have two different standards ? The 4 holidays are paid leave which have been made mandatory by law and if an employee is asked to work on these days he is paid extra. These extra day are paid at the rate of Gross/30 where as overtime is paid at double the rate op pay per hour. Think about it ?

Awais Arshad• Mahboob sb over time is excluded with sunday. If employee works on sunday it means he will be rewarded one day salary. standard formula is salary/26/8*2 = per hour overtimeBabur Yaqub• OT means working on Hours 'other then the prescribed/announced hours of work' so don't confuse it with normal working day/hours. Hence the OT is payable for work after office hours, and or on weekends. Some employers (e.g. my employer) pay minimum of 8 hours of OT for work on weekends (we have sat/sun off, and it is being in practice since the company came into being in 1958), also this is way above the minimum which law require us to do so; in case the OT hours are more than 8 hours, the employee is paid accordingly.The 26 day formula which is being stated by many informed people here is in general use, but it means that these employers are 'paying above' the minimum required rate payable under the law, which I stated above.

One more factor is CBA agreements with Employees Unions, because they can influence several of the pay and allied benefits and or how they are awarded / calculated.