HRSINGAPORE Community Discussions
OT Rate for Employees Earning Above $2,600
QUESTION
Dear HR Practitioners,
If the company wish to give overtime pay to employees drawing a salary above $2,600, what will be a possible win-win situation (as in the fair manner of calculating the OT rates)?
Our current practice is that $12 per hour is compensated to this group of employees (earning up to $3,200). Is there a better way or a solution?
Thank You.
Ying
REPLY 1
For white-collar employees earning more than $2600 to $4000 per month, we pay OT at 1.5 times or time off, dept managers decide.
AL
REPLY 2
You may wish to calculate the OT rate based on the ceiling of $2600.
Daniel
REPLY 3
In Myanmar, OT calculation is fixed by our labour law as mentioned below:
For Monthly Basis
OT 1 hour = [ (base pay x 12 months) / (44 hour x 52 week ) ] x 2 times
For Daily Basis
OT 1 hour = [ (day amount x 6 working day) / (44 hour ) ] x 2 times
In short, our OT is practised about 2 times of base pay. It is as minimum as we have to be compensated. But the employer pays more, exceeding the minimum, it will be up to his/her consent. Management level enjoys responsibility allowance and there is no OT.
MKT
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