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Overtime Pay Calculator (India)

Calculate Overtime Pay

Enter monthly wages and overtime hours worked for an instant double-rate calculation.

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Based on the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 and the OSH (Central) Rules, 2026, effective from 21 November 2025. Some states may notify different rules — verify locally before relying on this for compliance filings.

What Is Overtime Pay Under Indian Labour Law?

Overtime pay is the extra wage an employer must pay when a worker is required to work beyond the statutory daily or weekly hour limit. Unlike a discretionary bonus, it is a legal entitlement — paying only the ordinary rate for overtime hours is a violation regardless of company policy.

Overtime rate: 2× the ordinary rate of wages

This "double rate" floor comes from Section 14 of the Code on Wages, 2019, and applies across factories, shops, and commercial establishments alike — a change from the earlier, sector-by-sector rules.

When Overtime Applies

  • Triggered once a worker crosses 8 hours in a day or 48 hours in a week, under Section 25 of the OSH Code, 2020
  • Overtime is consent-based — an employer cannot compel a worker to stay beyond the standard shift
  • For women working past 7 PM, the OSH Code requires written consent plus safe transport arrangements
  • Capped at 144 hours per quarter under the central rules — some states apply a different limit under their own notified rules

How the Double-Rate Calculation Works

Rule 69(3) of the OSH (Central) Rules, 2026 sets out how a monthly wage converts to an hourly rate for overtime purposes:

  • Daily wage = Monthly wages ÷ 26 (the standard working-days divisor)
  • Hourly rate = Daily wage ÷ 8 (the standard working-hours divisor)
  • Overtime rate = Hourly rate × 2

"Wages" here means Basic + Dearness Allowance + retaining allowance (if any) — not the full CTC, and not one-off allowances or reimbursements.

Worked Example

A worker with monthly wages of ₹20,000 who puts in 10 hours of overtime this month:

  • Daily wage: ₹20,000 ÷ 26 = ₹769.23
  • Hourly rate: ₹769.23 ÷ 8 = ₹96.15
  • Overtime rate: ₹96.15 × 2 = ₹192.31/hour
  • Overtime pay: ₹192.31 × 10 hours = ≈ ₹1,923

Enter your own wage and hours in the calculator above for an instant breakdown — this example just shows how the divisors and multiplier are applied.

Old Factories Act vs. the New OSH Code

  Factories Act, 1948 (repealed) OSH Code, 2020 (current)
Who was coveredFactory workers onlyAll sectors — factories, shops, commercial establishments
Overtime rate2× (factories); 1.5×-2× under state Shops Acts2× uniformly, per Code on Wages Sec. 14
Quarterly OT cap50 hours144 hours (central rules; state rules may differ)
ConsentNot explicitly requiredConsent-based; written consent + safe transport for women past 7 PM

Section 143(1)(a) of the OSH Code repealed the Factories Act, 1948, along with several other older labour laws, once the new codes took effect on 21 November 2025. If you're still budgeting overtime against the old 50-hour cap, update your attendance policy to the new 144-hour limit.

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FAQ

Frequently Asked Questions

Common questions about overtime pay in India

How is overtime pay calculated in India? −

Divide monthly wages (Basic + DA + retaining allowance) by 26 to get the daily wage, then by 8 to get the ordinary hourly rate. Overtime is paid at double that hourly rate for every hour worked beyond 8 hours a day or 48 hours a week, under Section 14 of the Code on Wages, 2019 and Rule 69 of the OSH (Central) Rules, 2026.

What is the overtime rate in India — 1.5x or 2x? −

2x. India's overtime rate is double the ordinary rate of wages, not the 1.5x rate used in some other countries. This applies uniformly across factories, shops, and commercial establishments under the current labour codes.

Is there a limit on how much overtime an employee can work? −

Yes. Under Rule 69(4) of the OSH (Central) Rules, 2026, overtime is capped at 144 hours per quarter for central-sphere establishments. Some states have notified a different quarterly limit under their own rules, so check the specific limit that applies to your state.

Is overtime mandatory, or can an employer require it? +

Is overtime pay taxable? +

Did the new labour codes change overtime rules? +

Does SnapHRM calculate overtime automatically during payroll? +

Have more questions? Check our documentation or contact us.

Track Overtime — Pay It Automatically

SnapHRM syncs attendance with payroll, so overtime hours are calculated and paid correctly every cycle. Free for teams up to 5 employees, with a self-hosted Pro option for unlimited employees.

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