Payroll & attendance (India)
Overtime calculator — India
Indian factory and many state shop-establishment rules pay overtime at twice the ordinary rate. Compute the ordinary rate and the overtime due.
- Ordinary hourly rate
- ₹144
- Overtime rate (2×)
- ₹288
- Overtime pay due
- ₹3,462
Runs entirely in your browser — nothing you type is sent or stored. Indicative arithmetic, not legal, payroll or tax advice.
The formula
- Ordinary hourly rate = monthly wages ÷ (26 days × standard hours per day)
- Overtime rate = 2 × ordinary hourly rate (Factories Act, s.59)
- Overtime pay = overtime rate × overtime hours
The legal frame, briefly
Section 59 of the Factories Act, 1948 entitles a worker who exceeds 9 hours in a day or 48 hours in a week to wages at twice the ordinary rate. Most state Shops and Establishments Acts — which cover IT companies, agencies and offices — carry an equivalent double-rate rule, though thresholds and caps vary by state. The Occupational Safety, Health and Working Conditions Code, 2020 consolidates these provisions and retains the twice-the-ordinary-rate principle.
The conventional divisor treats a month as 26 paid days, which is why the formula divides monthly wages by 26 before dividing by daily hours. 'Ordinary rate' means basic wages plus dearness and comparable allowances — not gross including one-off payments.
Why overtime disputes are really record disputes
The formula is simple; the fight is over the hours. If working time is reconstructed at month-end from memory or badge swipes, both underpayment and inflated claims are unprovable either way. A contemporaneous record of when each session ran, kept in the format inspectors expect (Form IV overtime register in many states), settles the question before it becomes one.
Note that overtime hours themselves are capped — commonly in the range of 50–75 hours per quarter depending on state and sector — so tracking the running total matters as much as paying the right rate.
Stop calculating this by hand
Workclave keeps the working-time record that overtime claims stand on — sessions with start, end, project and approval — and flags when someone crosses daily or weekly thresholds.
Overtime calculator (India) — common questions
Does the double rate apply to IT companies and offices?
Coverage comes from your state's Shops and Establishments Act rather than the Factories Act, and most states apply an equivalent double-rate rule. Some states exempt certain IT/ITES establishments from parts of the Act — Karnataka, Telangana and others issue such notifications — so check your state's current position.
Which wage components go into the ordinary rate?
Basic wages plus dearness allowance and allowances of a like nature. Exclude bonus, overtime itself and one-time payments. If in doubt, your appointment letter's wage structure and the state rules govern.
Is this calculator legal advice?
No. It implements the standard 26-day, double-rate formula. State thresholds, exemptions and caps vary, and the Labour Codes' rollout continues to change details — confirm your specific case with counsel or your compliance advisor.
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