Question

Under the Factories Act, 1948 which of the following statements is correct about overtime and its calculation?

• A. Piece-rated workers are excluded from overtime calculations under all circumstances
• B. Overtime is payable only if a worker works more than ten hours a day
• C. Overtime for work beyond nine hours a day or forty-eight hours a week is payable at twice the ordinary rate; the definition of “ordinary rate” includes basic wages and certain allowances but excludes bonuses and overtime itself
• D. State Governments have no power to prescribe registers or compute cash equivalents of concessional supplies when calculating ordinary rate

Hint:

In overtime-related questions, remember that overtime pay typically applies when work exceeds a set number of hours, and the rate is usually calculated based on the ordinary wage, excluding bonuses and overtime pay.

Answer 1

The Correct Option is C

As per the Factories Act, 1948, overtime is applicable when the worker exceeds nine hours of work in a day or forty-eight hours in a week. The overtime is calculated at twice the ordinary rate, where "ordinary rate" excludes bonuses or overtime payments. Therefore, Option (c) is correct.