Compensation

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Overtime Compensation

In accordance with the Shop and Office Employees Act, normal working hours are 8 hours per day and 45 hours per week. The Factories Ordinance states that the normal working hours must not exceed 09 hours per day, exclusive of intervals allowed for meals and rest. The normal working hours limit does not apply to any person who holds an executive or managerial position in a public institution and who is in receipt of a consolidated salary the initial of the scale of which is not less than Rs. 6, 720 per annum.

If a worker works beyond the stipulated working hours, he/she is entitled to an overtime pay that is 150% (1.5 of X) of the rate of his ordinary pay. The overtime hours in a week cannot exceed 12 hours.

Source: Regulation 3, 6 & 7 of the Shop and Office Employees Act of 1954; §67 of the Factories Ordinance

Night Work Compensation

There is no premium payment for night work.

Compensatory Holidays / Rest Days

No provision could be identified in laws to require an employer to provide compensatory rest day to those workers working on weekly rest day. However, if a worker works on a public holiday, he/she has to be allowed a holiday with full pay on or before the 31st of December.

Source: §7 of Shop and Office Employees Act, 1954

Weekend / Public Holiday Work Compensation

Employees may be required to work on weekend and public holidays. If workers have to work on a public holiday, they are entitled to 200% of the normal rate of wages. No premium is provided for working on weekly rest days.

Source: §7 of Shop and Office Employees Act, 1954

Regulations on Compensation

  • Shop and Office Employees (Regulation of Employment and Remuneration) Act, 1954

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