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Overtime Calculator
Extra hours should mean extra pay you can check. This overtime calculator works out your overtime earnings at 1.5× or the double rate (2×) — starting either from your hourly rate or from your monthly salary, using the standard 26-working-day payroll convention. It also shows what the same hours would pay at the other multiplier, so you can compare your company's policy against the Factories Act rate at a glance.
| Your ordinary hourly rate | |
| Overtime rate per hour (selected multiplier) | |
| Overtime hours | |
| Overtime pay (selected multiplier) | |
| Same hours at the other multiplier (comparison) |
How to use this overtime calculator
- If you know your hourly rate, choose that option and type it in. If not, choose monthly salary — the calculator divides it by working days (26 by default) and hours per day (8 by default) to get your hourly rate.
- Enter the overtime hours you worked in the period — a week, a month, or a single project.
- Pick the multiplier: 2× if the Factories Act or your state rule applies, 1.5× if that is what your company policy or contract promises.
- Compare the two figures shown — the pay at your multiplier and at the other one — before you agree to an overtime arrangement.
How overtime pay works in India
The best-known rule is the Factories Act 1948, Section 59: where a worker works more than 9 hours in a day or 48 hours in a week, the extra hours are paid at twice the ordinary rate of wages. Many state Shops and Establishments Acts carry a similar double-rate rule for shop and office staff, with their own daily and weekly limits. There is no single overtime law covering every private-sector office employee in India — for many, the appointment letter and HR policy decide whether overtime is paid at 1.5×, 2×, or given as compensatory time off.
Two practical points. Overtime is taxable salary income, and it should appear as its own line on your payslip — if it does not, ask payroll how it was counted. And overtime has legal ceilings: factory overtime is capped (50 hours in a quarter, and total hours including overtime cannot exceed 60 in a week), so a calculator result for very large hours is a sign to check the rules, not just the money.
Worked example
A worker earns ₹41,600 a month. Payroll divides by 26 working days and 8 hours: 41,600 ÷ 26 ÷ 8 = ₹200 per hour. In a busy month he works 10 overtime hours:
- At the Factories Act double rate (2×): 200 × 2 × 10 = ₹4,000
- At time-and-a-half (1.5×): 200 × 1.5 × 10 = ₹3,000
The calculator starts with exactly these values. The ₹1,000 gap on just 10 hours is why the multiplier in your contract matters — over a heavy quarter of 50 overtime hours, the same gap grows to ₹5,000.
Overtime pay at ₹200 per hour
| Overtime hours | Pay at 1.5× | Pay at 2× | Difference |
|---|---|---|---|
| 5 | ₹1,500 | ₹2,000 | ₹500 |
| 10 | ₹3,000 | ₹4,000 | ₹1,000 |
| 15 | ₹4,500 | ₹6,000 | ₹1,500 |
| 20 | ₹6,000 | ₹8,000 | ₹2,000 |
| 25 | ₹7,500 | ₹10,000 | ₹2,500 |
At a different hourly rate the amounts scale in proportion — double the rate and every figure doubles. Use the calculator above with your own rate for exact numbers.
Frequently asked questions
What is the overtime rate in India?
For factory workers, the Factories Act 1948 (Section 59) sets overtime at twice the ordinary rate of wages — double pay — for work beyond 9 hours in a day or 48 hours in a week. Many state Shops and Establishments Acts use the same double rate. Office and IT staff are usually governed by their appointment letter and company policy, where 1.5 times or 2 times the hourly rate, or compensatory off, is common.
How is the hourly rate worked out from a monthly salary?
The common payroll convention is: hourly rate = monthly salary divided by 26 working days, divided by the standard hours per day (usually 8). So a monthly salary of 41,600 rupees gives 41,600 / 26 / 8 = 200 rupees per hour. Some employers divide by 30 calendar days instead, which gives a lower hourly rate — check which convention your payroll uses.
Is overtime pay taxable?
Yes. Overtime pay is part of your salary income and is taxed at your normal slab rate, just like basic salary and allowances. It also normally counts for PF and ESI where those apply, because it is a wage paid for work done. Your payslip should show overtime as a separate earning line.
Can my employer make me work overtime every day?
There are legal limits. Under the Factories Act, total work including overtime cannot exceed 10.5 hours in a day (including rest intervals the spread-over is capped), overtime cannot exceed 50 hours in a quarter for factory workers, and weekly hours including overtime are capped at 60. State rules and your contract add their own limits. Regular forced overtime beyond these limits is not legal — raise it with HR or the labour department.
What is the difference between 1.5x and 2x overtime?
The multiplier is applied to your ordinary hourly rate. At 1.5x, an hour of overtime pays one and a half times the normal hourly rate — this is the standard in the United States (FLSA) and in many Indian company policies. At 2x, it pays double — the rate the Indian Factories Act prescribes. On a 200-rupee hourly rate, 10 overtime hours pay 3,000 rupees at 1.5x and 4,000 rupees at 2x.
Does overtime count towards PF and gratuity?
Overtime wages are generally included in wages for ESI, and for PF the position depends on whether overtime is a regular, universal payment — one-off overtime is usually excluded from PF wages after court rulings, but employers differ. Gratuity is calculated on basic plus DA, so overtime does not increase gratuity. Check your payslip and PF statement to see how your employer treats it.