Overtime pay calculator

Hourly rate, overtime pay and total pay for a month, at the double rate the Occupational Safety, Health and Working Conditions Code, 2020 requires for work beyond 8 hours a day or 48 a week, with the quarterly cap from the central rules of 8 May 2026. Figures as of 1 November 2026.

Pay and hours

Result

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A general estimate, not legal advice. The double rate and the 8-hour day come from the OSH Code, in force since 21 November 2025; the 144-hour quarterly cap is in the central rules of 8 May 2026 and applies where the central government is the appropriate government. For most private companies the state's rules apply, and several states still carry the older 50 to 125-hour caps from the Factories Act and Shops and Establishments Acts. Staff in genuinely managerial or supervisory roles are generally outside the overtime provisions.

How this is calculated

  1. Hourly rate = monthly wage ÷ working days per month ÷ hours per day. With the defaults that is wages ÷ 26 ÷ 8, the divisor most state rules and payroll practice use; change the two figures if your state rules prescribe another.
  2. Wage base. Section 27 of the OSH Code pays overtime at twice the "ordinary rate of wages", and "wages" takes the Code on Wages definition: basic, DA and retaining allowance, with the rule that excluded allowances (HRA, conveyance, special allowance, incentives) cannot exceed half of total remuneration. The gross option is for employers whose policy pays more than the statute requires.
  3. Overtime pay = overtime hours × hourly rate × multiplier. The statutory multiplier is 2. The old Factories Act and most Shops and Establishments Acts also used double rate, so 1.5× is not a statutory option for covered workers; it is offered for policies that pay exempt staff a lower rate.
  4. Total pay = monthly wage + overtime pay. Overtime is taxed as salary and shown as its own payslip line.
  5. Cap check. The month's hours are compared with one third of the quarterly cap (48 hours a month at a 144-hour cap). A warning appears above that; the calculator still shows the pay, because hours actually worked must be paid even where the cap was breached.
  6. Comparison table repeats the same rate for 5, 10, 20 and 40 overtime hours.

Overtime starts as an attendance fact: actual in and out times, a flag for any day over 8 hours or week over 48, a manager confirming it was requested, and the approved hours flowing into payroll as a separate earning. That is how ZekoHR links time and attendance to the payroll run. Rules, consent, comp-off versus pay and the records inspectors ask for: overtime rules in India under the labour codes. See also where the state rules stand and salary structure explained.

Sources checked on 1 November 2026: Acuity Law, FAQs on the OSH Code 2020 and the Central Rules 2026; LawSikho, working hours, overtime and leave under the labour codes; EZHRM and TM Services on the 144-hour central cap and the state transitional caps (50 to 125 hours a quarter).

FAQ

Common questions

What is the overtime rate in India?

Twice the ordinary rate of wages, under section 27 of the Occupational Safety, Health and Working Conditions Code, 2020, for work beyond 8 hours in a day or 48 in a week. The Factories Act, 1948 and most state Shops and Establishments Acts that the Code replaced also required double rate, so 2× has been the rule for covered workers for decades; what changed in 2025 is that it now applies across establishments, not just factories.

How is the hourly rate worked out from a monthly salary?

Monthly wages divided by 26 working days and then by 8 hours, unless your state rules prescribe a different divisor. "Wages" means basic, DA and retaining allowance under the Code on Wages, subject to the rule that excluded allowances cannot exceed half of total remuneration. On ₹26,000 of such wages the hourly rate is ₹125 and the overtime rate ₹250.

Is there a limit on overtime hours?

Yes. The OSH (Central) Rules, 2026, notified on 8 May 2026, allow up to 144 overtime hours in a quarter for establishments where the central government is the appropriate government. States set their own caps for everyone else, and until a state notifies rules under the Code its older limits continue, typically 50 to 125 hours a quarter under the Factories Act or the state Shops and Establishments Act. Check your state before relying on 144.

Can overtime be compensated with time off instead of pay?

Generally not for hours beyond the daily or weekly limit, which must be paid at double rate. Compensatory off is a separate entitlement for working on a weekly off or holiday, and a comp-off does not replace overtime pay unless the rules that apply to your establishment expressly allow it. Paying single rate "because we also give comp-off" is a common finding in inspections.

Do salaried office staff get overtime?

Often, yes. The Code's working-hours chapter covers "workers", which excludes people in genuinely managerial, administrative or supervisory roles above a wage threshold set by the rules, but job content decides, not the title. An engineer, accountant, support agent or sales executive is very likely covered; a team lead with real supervisory authority may not be. Thresholds and definitions vary by state.

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