Overtime Calculator
Calculate overtime pay, hourly rate and total monthly pay from your basic salary
Work Details
Monthly Basic Salary (₹)
₹
Working Days per Month
days
Working Hours per Day
hrs
Overtime Hours (this month)
hrs
Overtime Rate Multiplier
Overtime Formula
Hourly Rate = Monthly Basic / (Working Days × Hours/Day)
OT Rate = Hourly Rate × Multiplier
OT Pay = OT Rate × OT Hours
Total Pay = Regular Pay + OT Pay
Overtime Pay
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Total Monthly Pay: —
Hourly Rate
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Regular rate/hour
OT Hourly Rate
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Regular Pay
—
Overtime Pay
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Pay Breakdown
Regular Pay: —
Overtime Pay: —
What is an Overtime Calculator?
Overtime pay is the additional compensation paid to employees for hours worked beyond standard working hours (typically 8 hours/day or 48 hours/week as per the Factories Act). Overtime is typically paid at 1.5× the normal rate (time and a half) or 2× (double time) depending on company policy.
For salaried employees, the overtime hourly rate is derived from monthly salary: Hourly Rate = (Monthly Basic) / (Working Days × Hours per Day). This calculator computes overtime earnings based on your monthly salary, overtime hours, and applicable multiplier.
lightbulb Example Calculation
Scenario: Mr. Suresh Babu, production supervisor at Tata Steel — Monthly Basic Salary ₹28,000, worked 24 hours of overtime this month at 1.5× rate
1Hourly rate = ₹28,000 / (26 working days × 8 hours) = ₹28,000 / 208 = ₹134.6/hour
2OT rate = ₹134.6 × 1.5 = ₹201.9/hour
3Total overtime pay = ₹201.9 × 24 hours = ₹4,846
✓ Result: Suresh earns ₹4,846 extra as overtime pay, making his total month's take-home ₹32,846 before deductions.
help_outlineHow to Use the Overtime Calculator
- Enter your Monthly Basic Salary — only the basic component (not total CTC or gross salary). Basic is used for OT calculation as per the Factories Act. Typically 40–50% of gross salary.
- Enter Working Days per Month — standard is 26 days (excluding Sundays) for a 6-day work week, or 22 days for a 5-day week. Verify with your employment contract or HR policy.
- Enter Regular Working Hours per Day — typically 8 hours. Some factories work 9-hour shifts; adjust accordingly to get the accurate hourly rate.
- Enter Overtime Hours worked in the current month — total extra hours beyond regular working hours this month (e.g., 20 hours over 10 days = 2 extra hours/day).
- Select the Overtime Rate Multiplier (1.5× standard, 2× double time for Factories Act workers, or enter a custom rate). Click Calculate Overtime to see hourly rate, OT pay, and total monthly pay.
Benefits
- Derive your exact hourly rate from monthly salary — useful for comparing consulting/freelance rates
- Know your overtime pay precisely before the payslip arrives — verify employer's calculation
- Confirm if employer applied the correct multiplier and hours — avoid underpayment of OT
- Compare 1.5× vs 2× scenarios — understand your legal entitlement under the Factories Act vs company policy
- Pay breakdown chart shows what percentage of your total monthly pay is regular vs overtime
Key Terms
- Basic Salary
- The fixed, non-variable core component of your salary package — used to calculate OT pay, PF (12% of basic), gratuity (15/26 × basic), and leave encashment. Excludes HRA, allowances, and variable pay.
- Hourly Rate
- Monthly Basic / (Working Days × Hours/Day). For ₹30,000 basic / (26 days × 8 hours) = ₹144.2/hour. This is the regular rate — OT rate multiplies this by the applicable factor.
- OT Multiplier
- Factor applied to hourly rate for overtime: Factories Act mandates 2× for factory workers. Most office/IT companies pay 1.5× or straight time (1×) for salaried employees — check your employment contract.
- Factories Act, 1948
- Requires adult workers in factories to work max 48 hours/week or 9 hours/day. Overtime (anything beyond) must be paid at double the regular rate. Applicable to manufacturing units with 10+ workers.
- Compensatory Off (Comp-off)
- Equivalent time off given instead of overtime pay. Legally permissible only if agreed to; cannot replace mandatory Factories Act overtime pay in manufacturing. Service sector employees often accept comp-off.
quizFrequently Asked Questions
What does the Factories Act say about overtime pay?
The Factories Act, 1948 (Section 59) mandates: (1) No adult worker shall work more than 48 hours in any week or more than 9 hours on any day. (2) For overtime (any work beyond these limits), the worker must be paid at twice the ordinary rate of wages. The "ordinary rate" is calculated on the basis of the daily or hourly rate applicable to the worker. The Act applies to manufacturing establishments with 10+ workers (with power) or 20+ workers (without power). IT companies, banks, hospitals, and other service sector employers are not covered by the Factories Act — they are governed by Shops and Establishments Acts, which vary by state and may mandate only 1.5× or leave it to employment contracts.
Is overtime pay taxable in India?
Yes — overtime pay is fully taxable as part of your salary income under Section 17(1) of the Income Tax Act. It is treated like regular salary — added to your gross income and taxed at your applicable slab rate. There is no separate exemption for overtime pay. The employer deducts TDS on the cumulative salary including overtime. If your overtime income pushes you into a higher tax bracket mid-year, the TDS rate on subsequent salary adjusts accordingly. For salaried individuals in the 30% bracket, ₹4,846 in OT pay results in ₹1,454 in TDS, leaving ₹3,392 as net OT income. Include OT in your projected annual income when computing advance tax if you receive significant OT consistently.
How do I calculate my hourly rate from my monthly salary?
Standard formula: Hourly Rate = Monthly Basic Salary / (Working Days × Hours per Day). For a 6-day week (26 working days, 8 hours/day): Hourly Rate = Basic / 208. For a 5-day week (22 working days, 8 hours/day): Basic / 176. Example: ₹40,000 basic / 208 = ₹192.3/hour (6-day week); ₹40,000 / 176 = ₹227.3/hour (5-day week). The denominator matters — confirm which working day count applies to your work schedule. Some companies use 30 days/month for simplification: ₹40,000 / 240 = ₹166.7/hour (lower hourly rate = less OT pay). Always verify which calculation method your employer uses.
Can my employer force me to work overtime?
Under the Factories Act, employers cannot mandate overtime work without worker consent in most cases — though in practice, many factory workers face pressure. However, the Act allows overtime for urgent repairs, breakdown situations, and national emergencies. For service sector (IT, BPO, finance), employment contracts often include clauses requiring reasonable additional hours without extra pay — this is common for salaried employees who are paid for results, not hours. Important: Even if your contract allows it, Indian labour law generally limits total working hours (regular + OT) to 60 hours/week in most states under Shops and Establishments Acts. Any overtime beyond mandated limits entitles you to appropriate compensation regardless of employment contract clauses.
What is the difference between overtime pay and compensatory off?
Overtime pay: Direct monetary compensation for extra hours worked — mandatory at 2× under the Factories Act for manufacturing workers. Provides immediate financial benefit; taxable in the year received. Compensatory off (Comp-off): Equivalent paid leave granted in lieu of extra hours worked — one day off for one day worked extra (or proportional). Common in IT/service sector, BPO, and corporate offices. Preferred by some employees who value time over money. Advantage: reduces overtime pay costs for employers; preserves work-life balance for employees. Disadvantage: comp-off expires if not used within a specified period (typically 3–6 months per company policy) and has no monetary payout if unused during employment. Under Factories Act, comp-off cannot replace the mandated 2× cash payment — it's not a legal substitute.