Overtime Calculator India 2026 — Free Online
Calculate overtime pay accurately as per the Factories Act (2x rate) or Shops & Establishments Act (1.5x rate). Instant results with full breakup.
| Detail | Value |
|---|---|
| Monthly Salary (Basic+DA) | ₹0 |
| Effective Hourly Rate | ₹0 |
| Overtime Rate Applied | 2x |
| Overtime Hours | 0 |
| Overtime Pay per Hour | ₹0 |
| Total Overtime Pay | ₹0 |
How to Use the Overtime Calculator
- Enter the monthly Basic + DA salary (the base for overtime calculation, not CTC).
- Fill in the total overtime hours worked in the month.
- Set your working days per month (default 26) and working hours per day (default 8).
- Select the applicable overtime rate — 2x for factory workers (Factories Act) or 1.5x for shops/offices (Shops & Establishments Act).
- Click Calculate Overtime Pay to get the hourly rate and total overtime amount.
Overtime Calculation Formula
Overtime Pay = Hourly Rate × Overtime Rate × Overtime Hours
Factories Act Rate = 2x (double the ordinary rate)
Shops Act Rate = 1.5x (one and half times)
Under the Factories Act 1948 (Section 59), workers must receive wages at twice the ordinary rate for overtime. Under most Shops & Establishments Acts, the rate is 1.5x. Formula reviewed by Vipul Jaganiya, Computer Science expert.
Overtime Calculation Examples
| Employee | Basic+DA/Month | OT Hours | Rate | OT Pay |
|---|---|---|---|---|
| Factory Worker | ₹18,000 | 20 hrs | 2x (Factories Act) | ≈₹3,462 |
| Office Assistant | ₹28,000 | 12 hrs | 1.5x (Shops Act) | ≈₹2,423 |
| Warehouse Staff | ₹22,000 | 30 hrs | 2x (Factories Act) | ≈₹6,346 |
* Calculation based on 26 working days, 8 hours/day standard shift.
Frequently Asked Questions — Overtime
Under the Factories Act 1948, overtime is paid at twice the ordinary rate of wages (2x). Some establishments follow 1.5x under the Shops & Establishments Act.
Overtime = (Monthly Basic + DA) ÷ (Working days × Daily hours) × Overtime hours × Overtime rate. For a 26-day, 8-hour working month, hourly rate = Monthly salary ÷ 208.
Yes, overtime pay is fully taxable as salary income in India. It is added to the employee’s total salary and taxed at the applicable income tax slab rate.
Under the Factories Act, the maximum overtime is 50 hours per quarter (approx. 4 hours/week). With special exemptions, this can be extended to 75 hours/quarter. The new Labour Codes propose a limit of 125 hours overtime per quarter.
Workers/employees covered under the Factories Act, Shops & Establishments Act, or Minimum Wages Act are eligible for overtime. Managerial and supervisory staff in higher salary brackets may be excluded.
Any hours worked beyond the standard shift (typically 8–9 hours/day or 48 hours/week) constitute overtime. The standard workday and week vary by state and industry.
Yes, overtime pay is mandatory under the Factories Act 1948 and applicable Shops & Establishments Acts. Employers cannot require employees to work overtime without additional compensation.
Some companies offer compensatory off (comp-off) instead of overtime pay. While this is common for white-collar employees, factories and workers covered under the Factories Act are legally entitled to overtime wages.