ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -“No employee is supposed to work for more than 48 hours in a week and 9 hours in a day. Any employee who works for more than this period is eligible for overtime remuneration prescribed as twice the amount of ordinary wages.”

Detailed explanation-2: -Minimum Wages Act, 1948 According to Section 33, workers who work overtime must be paid at a rate that is double their regular rates of pay. It states that the employer may accept actual work up to a maximum of 9 hours every 12-hour shift on any given day.

Detailed explanation-3: -Basic salary is a rate of pay agreed upon by an employer and employee and does not include overtime or any extra compensation. Gross salary, however, is the amount paid before tax or other deductions and includes overtime pay and bonuses.

Detailed explanation-4: -The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.