Overtime Calculator — Overtime Wages at Double Rate
Enter the monthly wages, the working days and hours, and the overtime hours. Get the hourly rate, the overtime rate and the overtime pay.
Basic + DA and cash allowances that count as wages — not bonus or overtime.
Result
- Daily rate
- ₹600.00
- Ordinary hourly rate
- ₹75.00
- Overtime rate (2×)
- ₹150.00
- Overtime pay
- ₹3,000.00
Overtime is paid at twice the ordinary rate of wages for work beyond 8 hours a day or 48 hours a week.
Quick answer
Overtime pay = Overtime hours × 2 × Ordinary hourly rate. The ordinary hourly rate = Monthly wages (basic + DA and cash allowances that count as wages) ÷ Working days (usually 26) ÷ 8. Under the labour codes, work beyond 8 hours a day or 48 hours a week is overtime and is paid at twice the ordinary rate.
| Overtime rate | 2 × ordinary rate of wages |
|---|---|
| Normal hours | 8 a day, 48 a week |
| Daily rate | Monthly wages ÷ 26 (usual) |
| Wages for overtime | Basic + DA + cash allowances that count as wages |
| Quarterly overtime limit | Set by each state |
A worker who works beyond the normal hours is owed overtime at twice the ordinary rate of wages. The rule came from the Factories Act and continues under the Occupational Safety, Health and Working Conditions Code and the Code on Wages, in force since 21 November 2025.
The arithmetic is simple once the ordinary hourly rate is right. That rate is worked out from wages — basic, dearness allowance and the allowances that count as wages — not from the full gross including bonus or the overtime itself. Rates and limits as of 13 October 2026.
The formula
- Daily rate
Monthly wages ÷ Working days in the month- Ordinary hourly rate
Daily rate ÷ 8- Overtime rate
2 × Ordinary hourly rate- Overtime pay
Overtime hours × Overtime rate
A worked overtime calculation
A machine operator earns ₹15,600 a month in basic + DA. Daily rate = 15,600 ÷ 26 = ₹600; hourly rate = 600 ÷ 8 = ₹75; overtime rate = 2 × 75 = ₹150 an hour. For 20 hours of overtime in the month, overtime pay = 20 × 150 = ₹3,000.
If the same worker's wage was wrongly taken as gross including a ₹2,000 attendance bonus, the overtime would be overstated; if HRA that counts as wages was left out, it would be understated. Agree what goes into 'wages' once and apply it every month.
When overtime applies and the limits
Overtime is work beyond the normal daily hours or beyond 48 hours in a week, whichever gives the worker more. The spread-over, rest intervals and the maximum overtime allowed in a quarter are set by the state government's rules, so check the limit in force in your state before planning long overtime runs.
Overtime must be recorded — a register or attendance system showing the date, hours and payment — and paid with the wages for that period.
Overtime in payroll
Most errors come from recording: overtime noted on paper and keyed in at month end. Record overtime hours daily against the attendance, agree in writing what counts as wages, and use the same definition every month so the arithmetic is the same for everyone.
Questions people ask.
How is overtime calculated?
Overtime pay = Overtime hours × 2 × (Monthly wages ÷ 26 ÷ 8). Wages are basic + DA and the allowances that count as wages.
Is overtime paid at double rate in India?
Yes. Workers covered by the labour codes (earlier the Factories Act) are paid overtime at twice the ordinary rate of wages.
How many hours is overtime?
Work beyond 8 hours in a day or 48 hours in a week is overtime.
Should overtime be calculated on gross salary?
On the ordinary rate of wages — basic, DA and cash allowances that count as wages — not on bonus or the overtime itself. Some employers pay on gross by policy, which is more generous and allowed.
Why divide by 26 days?
26 is the usual number of working days in a month after weekly offs. Use the actual working days if your settlement or policy says otherwise; the calculator lets you change it.
Is there a limit on overtime hours?
Yes. The maximum overtime in a quarter is set by each state's rules under the OSH Code, so it varies by state.
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