What is the Overtime Pay?
Overtime is work beyond normal hours, paid at a premium rate. Under the Indian Factories Act, overtime must be paid at twice the ordinary rate for work beyond 9 hours a day or 48 hours a week.
Different sectors and state Shops and Establishments Acts apply their own rules, and many white-collar roles are exempt from statutory overtime entirely.
Formula & worked example
Overtime pay = Overtime rate × overtime hours
Total = Normal pay + Overtime pay
Worked example: ₹350 an hour for 40 hours = ₹14,000 normal pay. Eight overtime hours at double time (₹700/hr) adds ₹5,600, giving ₹19,600 for the week — overtime is 28.6% of total pay despite being 17% of hours.
How to use this overtime pay calculator
- Enter your normal hourly rate. For salaried staff, divide monthly pay by ~173 hours.
- Enter normal weekly hours and overtime hours separately.
- Choose the multiplier — 2× is the statutory rate under the Factories Act.
- The monthly figure assumes the pattern repeats each week.
Smart tips
- The Factories Act mandates 2× for overtime beyond 9 hours a day or 48 a week — check what applies to your sector.
- Overtime pay is fully taxable and forms part of salary income.
- Track hours yourself. Disputes over unpaid overtime almost always come down to missing records.
- Regular heavy overtime often signals understaffing rather than a genuine earnings opportunity — factor in the health cost.
Frequently asked questions
What is the overtime rate in India?
Under the Factories Act, twice the ordinary rate of wages for work beyond 9 hours a day or 48 hours a week.
How do I calculate my hourly rate from a monthly salary?
Divide monthly salary by roughly 173 hours (40 hours × 52 weeks / 12 months) for a standard full-time schedule.
Is overtime pay taxable?
Yes, it is part of salary income and taxed at your applicable slab rate.
Are all employees entitled to overtime?
No. Managerial and supervisory roles are typically exempt, and rules vary by state Shops and Establishments Acts.
Want the theory behind the numbers? Read our salary guides on the Money Blog.