Free tool
Overtime Calculator for Indian Businesses
Enter a monthly salary and the overtime hours worked. The calculator returns the ordinary hourly rate and the statutory 2x overtime pay, and flags the quarterly limit before you cross it.
| Daily wage (monthly salary divided by 26) | ₹769.23 |
|---|---|
| Ordinary hourly rate (daily wage divided by 8 hours) | ₹96.15 |
| Overtime hourly rate (2x ordinary) | ₹192.31 |
| Overtime pay for 12 hours | ₹2,307.69 |
| Total payable this month | ₹22,307.69 |
An estimate for planning, not legal advice. Your state rules under the OSH Code, and your own contracts, sit on top of these figures.
A worked example: Rs 20,000 a month, 12 overtime hours
Priya is paid a consolidated Rs 20,000 a month and works a normal 8 hour day. In August she worked 12 hours of overtime. Here is the full calculation, using the 26 day divisor.
| Monthly salary (ordinary rate of wages) | Rs 20,000.00 |
|---|---|
| Daily wage (20,000 divided by 26) | Rs 769.23 |
| Ordinary hourly rate (769.23 divided by 8) | Rs 96.15 |
| Overtime hourly rate (96.15 times 2) | Rs 192.31 |
| Overtime pay (192.31 times 12 hours) | Rs 2,307.69 |
| Total payable for August | Rs 22,307.69 |
Now the same employee, same hours, using a 30 day divisor instead. The daily wage falls to Rs 666.67, the ordinary hourly rate to Rs 83.33, the overtime rate to Rs 166.67, and the overtime pay to Rs 2,000.00 exactly.
The gap is Rs 307.69 for one person in one month. Across forty employees on similar overtime it is roughly Rs 12,300 a month, and it is the difference between two arithmetically correct answers rather than a mistake in either. The 26 day divisor is the safer one to be holding when an inspector asks.
One more thing the table does not show. Twelve overtime hours a month is 36 a quarter, comfortably inside the 50 hour quarterly ceiling. At 18 hours a month it becomes 54 a quarter, and the roster is now the problem rather than the payroll.
How overtime is calculated, step by step
Establish the ordinary rate of wages
Take basic pay plus dearness allowance plus any regular allowance. Leave out bonus, and leave out overtime already earned. A consolidated salary with no split is itself the ordinary rate.Convert the monthly figure to a daily wage
Divide by 26, not 30, unless you have a specific reason otherwise. The monthly salary already pays for the weekly off, so 26 is the number of days actually worked for it.Convert the daily wage to an hourly rate
Divide the daily wage by the normal hours in a working day, which is usually 8. This is the ordinary hourly rate the law refers to.Double it
Multiply the ordinary hourly rate by 2. Section 27 of the OSH Code sets this rate and it is not negotiable downwards.Multiply by the overtime hours actually worked
Hours past 9 in a day or past 48 in a week, whichever the employee crosses first. Use recorded hours, not estimates.Check the hours against the quarterly cap
Fifty hours per quarter is the ceiling under Section 27. Sustained overtime that looks affordable per month can breach the cap by the end of the quarter.
The legal basis, with sections
The Occupational Safety, Health and Working Conditions Code 2020 came into force on 21 November 2025 and replaced the Factories Act 1948 along with twelve other safety laws. Three sections govern everything on this page.
- Section 25 sets hours of work. A daily limit of up to 12 hours with consent, and a weekly ceiling of 48 hours that holds even under a compressed four day week. The specific daily caps are set by state rules made under the Code, so confirm your own state before building a roster on them.
- Section 26 covers weekly and compensatory holidays.
- Section 27 sets extra wages for overtime at twice the ordinary rate of wages, requires overtime to be voluntary, and caps it at 50 hours per quarter with project based exemptions possible through a state authority.
The 26 day divisor does not come from the OSH Code. It comes from the Minimum Wages Act convention that a monthly wage covers 26 working days, the paid weekly off being already accounted for inside it. That is why this calculator lets you switch the divisor rather than hiding the choice.
Overtime questions Indian employers actually ask
What is the legal overtime rate in India?
Twice the ordinary rate of wages. Section 27 of the Occupational Safety, Health and Working Conditions Code 2020, in force since 21 November 2025, carries forward the same 2x rate that the Factories Act 1948 set. It is not a matter of company policy or negotiation. A contract promising 1.5x does not override it.
Should I divide the monthly salary by 26 or by 30?
By 26 in most cases. The Minimum Wages Act convention treats a monthly wage as pay for 26 working days, because the paid weekly off is already inside the monthly figure. Dividing by 30 spreads the same salary across every calendar day, which lowers the daily wage and therefore lowers every overtime hour. On a salary of Rs 20,000 the gap is about Rs 308 a month for 12 overtime hours, and it is the single most common reason two people calculating the same overtime get different answers.
How many overtime hours are allowed per quarter?
Fifty. Section 27 of the OSH Code caps overtime at 50 hours per quarter, though state authorities can grant project-based exemptions and some states set their own figure under rules made under the Code. Check your state before planning a roster that relies on sustained overtime.
Can an employer make overtime compulsory?
No. Overtime must be voluntary under the OSH Code. An employer cannot mandate it, and cannot treat refusal as misconduct.
Does overtime pay attract PF and ESI?
ESI yes, PF generally no. Overtime is included in wages for ESI contribution purposes. For PF, overtime is excluded from the definition of basic wages, so it does not normally attract a PF contribution, though it does count towards the ESI wage ceiling test.
What counts as the ordinary rate of wages?
Basic pay plus dearness allowance plus any allowance the employee is regularly entitled to, but excluding bonus and overtime itself. If you pay a consolidated monthly salary with no split, that consolidated figure is the ordinary rate.
Is the weekly limit really 48 hours?
Yes, and it is the one figure with no flexibility. Section 25 allows a daily limit of up to 12 hours with consent, and permits compressed four-day weeks where a state allows them, but the 48-hour weekly ceiling holds regardless of how the days are arranged. Anything past 48 in a week is overtime.
How do I prove the overtime hours if there is a dispute?
With a time record that was created when the work happened, not reconstructed afterwards. A register filled in at month end from memory carries very little weight in an inspection or a claim. A timestamped clock-in and clock-out per employee per day is what settles it.
The hard part is not the arithmetic
Every figure on this page depends on knowing exactly how many hours each person worked. That is the number most businesses are guessing at. Shiftelio records a timestamped clock-in and clock-out per employee per day, works out overtime against each person's own shift, and carries it into payroll without anybody retyping it.
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