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