Overtime Pay Calculator
Work out your overtime wages at twice the ordinary rate — enter your monthly wages, working days, standard hours and OT hours to see your hourly rate and total earnings live.
Overtime pay breakdown
Get your payroll & overtime compliance sorted
Our experts set up compliant payroll, overtime registers and wage records for your business.
Disclaimer: Indicative estimate based on the Factories Act 1948. Actual overtime entitlement may vary with the applicable state rules, the establishment type and the wage components counted as "ordinary rate of wages". Consult a labour-law professional for compliance.
Overtime pay in India — twice the ordinary rate
Under Section 59 of the Factories Act 1948, when a worker works more than 9 hours in a day or more than 48 hours in a week, they are entitled to overtime wages at twice their ordinary rate of wages. The same "double the wages" principle carries into the new labour codes (the Code on Wages 2019 and the OSH Code 2020).
How overtime pay is calculated
The calculation is a simple three-step formula. First find the ordinary hourly rate, then double it to get the overtime rate, then multiply by the overtime hours worked.
| Ordinary hourly rate | Wages ÷ (Days × Hrs) |
| Overtime hourly rate | 2 × Ordinary rate |
| Overtime pay | OT hrs × OT rate |
| Total earnings | Wages + OT pay |
| Monthly wages | ₹20,000 |
| Working days × hours | 26 × 8 = 208 |
| Ordinary hourly rate | ₹96.15 |
| Overtime rate (2×) | ₹192.31 |
| 20 OT hours → OT pay | ₹3,846 |
Worked example in full
Take a factory worker earning ₹20,000 a month (basic + DA), working 26 days a month at 8 standard hours a day, who puts in 20 hours of overtime during the month.
Key terms explained
Ordinary rate of wages
The basic wages plus dearness allowance (DA) and cash value of any concessional supplies — but excluding bonus. It is the base on which the overtime multiplier is applied.
Section 59, Factories Act 1948
The provision that fixes overtime at twice the ordinary rate when a worker exceeds 9 hours a day or 48 hours a week. It also requires a register of overtime to be maintained.
48-hour week
The statutory ceiling on normal weekly working hours. Work beyond 48 hours in a week (or 9 hours in a day) triggers the overtime entitlement at double wages.
Labour codes
The Code on Wages 2019 and OSH Code 2020 retain the 2× overtime principle and cap total working hours, consolidating the older factory and shops-and-establishments rules.
At what rate is overtime paid?
At twice the ordinary rate of wages under the Factories Act, and at the same or a similar rate under most state Shops & Establishment Acts, for work beyond nine hours in a day or 48 hours in a week.
How is the ordinary rate of wages computed?
Basic wages plus dearness allowance and cash equivalent of any concessional food or supplies, divided by the number of hours in the normal working period. House rent allowance and bonus are excluded.
Are there limits on overtime hours?
Yes. The Factories Act caps total hours at 60 in a week and overtime at 50 hours in a quarter, though states have varied these limits by notification. Records of overtime worked and paid must be maintained.
Do managers and supervisors get overtime?
Employees in a managerial or supervisory capacity are usually excluded from the overtime provisions. The test is the actual nature of duties, not the job title on the appointment letter.
Is overtime pay taxable?
Yes, fully, as salary in the month it is paid, and it forms part of the base for TDS under section 192. It is also counted as wages for ESI, though not for PF.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.