Overtime Calculator
Overtime pay at twice the ordinary rate, as the Factories Act and the Code on Wages require — hourly rate from monthly wages, the overtime rate, and the month’s total.
finance
Adjust the inputs below
Ready when you are
Adjust the inputs on the left to see your overtime pay this month.
Overtime in India is not paid at "time and a half". For workers covered by the Factories Act — and, since the Code on Wages, 2019, for wage earners generally — hours beyond the daily or weekly limit are paid at twice the ordinary rate. The arithmetic is short; the arguments are usually about the hourly rate it starts from.
The rate
Overtime pay = ordinary hourly rate × 2 × overtime hours.
Under the Factories Act the limit is 9 hours a day or 48 a week; beyond either, double rate applies. The ordinary rate is basic + DA plus the cash value of any concessional food or supplies — not bonus, not overtime itself, not HRA in most readings.
The divisor is where payslips differ
Monthly wages have to become an hourly figure, and the Act does not spell out the divisor. The usual practice is 26 working days × 8 hours = 208 hours, treating the weekly off as unpaid for this purpose. Some establishments use 30 days × 8 = 240 hours, which produces a lower hourly rate and therefore lower overtime — on ₹20,000 a month, ₹96.15 an hour against ₹83.33.
| Monthly basic + DA | Ordinary rate (÷208) | Overtime rate (×2) | 20 overtime hours |
|---|---|---|---|
| ₹15,000 | ₹72.12 | ₹144.23 | ₹2,885 |
| ₹20,000 | ₹96.15 | ₹192.31 | ₹3,846 |
| ₹25,000 | ₹120.19 | ₹240.38 | ₹4,808 |
| ₹30,000 | ₹144.23 | ₹288.46 | ₹5,769 |
Twenty hours on ₹20,000 is ₹3,846 at the 208-hour divisor and ₹3,333 at 240. If your payslip shows the lower figure, the divisor is the first thing to ask about.
Limits on overtime itself
The Factories Act caps total working hours at 60 a week and overtime at 50 hours a quarter; several states have notified higher quarterly limits, up to 125 hours, and the Code on Wages allows the appropriate government to fix its own. A worker cannot be made to work beyond the cap, and pay at the double rate does not cure a breach of the limit.
Who is outside the Factories Act
Shops, offices and other non-factory establishments come under each state's Shops and Establishments Act. Most also require double rate for overtime, but the daily and weekly thresholds and the divisor conventions vary by state, and managerial and supervisory staff above a wage threshold are commonly excluded. The Code on Wages applies the twice-the-normal-rate rule to employees generally, so the double rate is the safe default; check your state Act for the threshold at which it starts.
Tax
Overtime is salary. It is added to the month's wages, taxed at your slab through TDS, and counted for ESI contribution (though excluded when deciding whether you are within the ESI wage ceiling).
What this calculator assumes
Monthly basic + DA as the wage base, a selectable divisor (208 default, 240 alternative), and a selectable multiplier — 2× is the statutory rate; 1.5× is offered only for contracts that pay above the legal minimum in a different structure, and should never be used to justify paying less than double.
Overtime — frequently asked questions
What is the overtime rate in India?
Twice the ordinary rate of wages. The Factories Act requires double rate for work beyond 9 hours a day or 48 a week, and the Code on Wages, 2019 applies at least twice the normal rate to wage earners generally. "Time and a half" is not the Indian rule.
How is the hourly rate calculated from monthly salary?
Divide monthly basic + DA by the hours in a standard month. Usual practice is 26 days × 8 hours = 208, so ₹20,000 a month is ₹96.15 an hour and ₹192.31 an hour on overtime. Establishments that divide by 240 (30 × 8) get ₹83.33 and ₹166.67 — a lower figure worth questioning.
How much is 20 hours of overtime on a ₹20,000 salary?
₹3,846 at the 208-hour divisor: ₹20,000 ÷ 208 = ₹96.15 an hour, doubled to ₹192.31, times 20 hours. The month’s pay becomes ₹23,846 before deductions. At a 240-hour divisor the same overtime pays ₹3,333.
Is there a limit on overtime hours?
Under the Factories Act, total hours may not exceed 60 a week and overtime may not exceed 50 hours a quarter, though several states have notified higher quarterly limits of up to 125 hours. The Code on Wages lets the appropriate government set the limit. Paying double rate does not make hours beyond the cap lawful.
Is overtime taxable?
Yes — it is part of salary, taxed at your slab through TDS in the month it is paid. It also attracts ESI contribution if you are covered, although overtime is ignored when testing whether your wages are within the ESI ceiling.
Does overtime apply to office employees?
Non-factory establishments fall under the state Shops and Establishments Act, and most require double rate beyond the state’s daily or weekly threshold; managerial and supervisory staff above a wage level are usually excluded. Since the Code on Wages, the twice-the-normal-rate rule is the default for wage earners — check your state Act for where the threshold sits.
Embed this calculator
Free to use on your own site — no signup, no key, no limits. Paste this where you want the calculator to appear. Please keep the attribution line; it is the only thing we ask in return.
Add ?theme=light to the embed URL for a light background. The frame reports its own height to the parent window as a asc-embed-height message if you would rather size it automatically than use the fixed 620px.
Related calculators
Salary to Hourly
Convert annual salary to hourly rate.
In-Hand Salary Calculator
Turn a CTC offer into the amount that actually reaches your bank account — PF, professional tax by state, and income tax under both regimes, for FY 2025-26 (AY 2026-27).
ESI Calculator
Employees’ State Insurance contribution on monthly wages — the 0.75% employee share, the 3.25% employer share and whether the ₹21,000 ceiling covers you at all.
Payroll Calculator
Net pay after taxes & deductions.
Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.