Overtime Pay Calculator
Calculate overtime pay at the statutory double-rate.
About the Overtime Pay Calculator
Overtime pay in India is governed by laws like the Factories Act, 1948 (and analogous state Shops & Establishments Acts) which mandate that hours worked beyond the normal working day be paid at twice the ordinary rate of wages — not time-and-a-half as in some other countries, but double. This calculator applies that statutory multiplier to your actual wages.
The calculation works backward from your monthly wages to an hourly rate, using 26 as the standard divisor for working days in a month (accounting for weekly offs), then dividing by your normal daily working hours to get an ordinary hourly rate. Overtime hours are paid at exactly twice that hourly rate — the statutory floor that applies to workers covered under these Acts, regardless of what a company's informal overtime policy might otherwise offer.
Coverage varies: the Factories Act applies to factory workers, and many white-collar or managerial roles may be exempt from statutory overtime provisions depending on their state's Shops & Establishments Act and the nature of the role. If you're unsure whether your role is covered, check your state's applicable Act or your employment contract — but where the law applies, double-rate overtime is a floor employers cannot legally pay below.
Frequently asked questions
- Why is overtime paid at double rate, not 1.5x?
- Indian labour law (the Factories Act and equivalent state legislation) sets the statutory overtime rate at twice the ordinary wage rate — higher than the time-and-a-half common in some other countries.
- Why does the calculator divide monthly wages by 26?
- 26 is the standard number of working days assumed in a month for daily-wage calculations under Indian labour law, accounting for weekly offs (leaving roughly 4 off-days in a 30-day month).
- Does overtime law apply to all employees?
- Coverage depends on the applicable Act (Factories Act for factory workers, state Shops & Establishments Acts for others) and often excludes managerial or supervisory roles. Check your state's specific law or employment contract if you're unsure of your coverage.
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