The Supreme Court of India has held that compensatory allowances, including House Rent Allowance (HRA) and Transport Allowance (TA), must be included in the “ordinary rate of wages” for the purpose of calculating overtime wages under Section 59(2) of the Factories Act, 1948. A Division Bench comprising Justice Rajesh Bindal and Justice Manmohan dismissed the
Compensatory Allowances Must Be Included in ‘Ordinary Rate of Wages’ for Overtime Calculation Under Factories Act: Supreme Court
