How to use the Overtime Calculator
- Enter the monthly wages your OT rate is based on.
- Enter working days per month and normal hours per day.
- Enter overtime hours and the overtime multiplier.
Formula
Hourly rate = Monthly wages ÷ Working days ÷ Hours per day
Overtime pay = Hourly rate × Multiplier × Overtime hours
Double rate for overtime
The Factories Act requires overtime at twice the ordinary rate of wages for work beyond the daily or weekly limits, and many state Shops and Establishments Acts have similar rules. Office staff are often covered by company policy instead. Check which applies to you.
Worked example
₹26,000 a month, 26 days × 8 hours, 12 OT hours at 2×
- Hourly = 26,000 ÷ 26 ÷ 8 = ₹125
- OT rate = ₹250
- OT pay = 250 × 12
₹3,000 overtime
Important notes
- Which wages count (basic + DA, or gross) depends on the law and your employment terms.
Frequently asked questions
Is overtime paid on basic or gross salary?
Under the Factories Act, the ordinary rate includes basic wages and allowances such as DA, but not bonus. Company policies vary — check your appointment letter.
How many overtime hours are allowed?
Limits depend on the applicable law and state rules. Your HR team can confirm the limits for your workplace.
Sources and review
Last reviewed on by the BizToolsIndia editorial team. Official references:
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