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Overtime and labour cost
Track the overtime share and its cost each pay period.
People & organisationHow it's worked out
- Overtime share = overtime ÷ total hours. Cost = overtime hours × base rate × premium
- One pay period
NoteSustained overtime above about 10% of hours usually means a staffing gap. In India, the Factories Act pays overtime at twice the ordinary rate; check the law that applies to you.
Source: Workforce cost analysis practice; Factories Act 1948 s 59 (India)
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