Overtime calculator
Work out overtime pay from monthly wages and overtime hours.
Overtime pay
₹3,462
Hourly rate = monthly wages ÷ (working days × hours per day). Indicative only.
How it works
Where statutory overtime applies, such as factories under the Occupational Safety, Health and Working Conditions Code, 2020 (in force from 21 November 2025) and many shops and establishments under state law, overtime is paid at twice the ordinary rate of wages.
The ordinary rate is usually derived from monthly wages divided by working days and normal daily hours. State rules and your policy decide which allowances count as wages and the limits on overtime hours.
Formula
- Hourly ordinary rate = monthly ordinary wages ÷ (working days × normal hours per day)
- Overtime pay = hourly rate × 2 × overtime hours
Worked example
Wages ₹18,000, 26 days of 8 hours, 20 overtime hours
- Hourly rate: ₹18,000 ÷ 208 = ₹86.54
- Overtime rate: ₹173.08 an hour
- Overtime pay: ₹173.08 × 20 = ₹3,462
Common mistakes to avoid
- Paying overtime at the ordinary rate instead of twice the rate where the law requires double.
- Leaving allowances out of the ordinary rate when they form part of wages.
- Exceeding the permitted overtime hours in a quarter.
- Not recording overtime approvals, which makes payroll hard to defend in an inspection.
Overtime calculator: FAQs
Is overtime always paid at double rate?
Where statutory overtime provisions apply, yes. Employees outside those provisions, such as many managerial staff, are governed by their contract and company policy.
Does overtime count for PF and ESI?
Overtime is generally excluded from PF wages. For ESI, overtime paid is part of wages for contribution but not for deciding coverage.
Related reading
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