Overtime Pay Calculator
Calculate your extra earnings for working beyond standard hours. Based on Indian labor laws and standard corporate practices.
Work Details
Overtime is typically calculated on Basic + DA, not Gross CTC.
Under the Factories Act, 1948, OT is paid at 2x the normal rate.
Total Overtime Pay
₹1,923
For 10 extra hours worked
Standard Hourly Rate
₹96
Per hour
Overtime Hourly Rate
₹192
At 2x multiplier
Total Gross Salary
₹21,923
Basic + Overtime
Salary Breakdown
Understanding Overtime Pay in India
Overtime pay is the additional compensation you receive for working beyond your standard working hours. In India, the rules governing overtime are primarily defined by the Factories Act, 1948, and state-specific Shops and Establishments Acts.
The 2x Rule (Double Pay)
Under Section 59 of the Factories Act, if a worker works for more than 9 hours in any day or more than 48 hours in any week, they are entitled to wages at the rate of twice their ordinary rate of wages.
Ordinary Rate of Wages
The "ordinary rate" usually means the basic wages plus allowances (like Dearness Allowance), but it typically excludes bonuses, HRA, and overtime earnings.
White-Collar & IT Exemptions
It's important to note that many IT/ITeS companies and managerial positions are exempt from strict overtime regulations under state Shops and Establishments Acts. For these roles, companies often offer Compensatory Offs (Comp-offs) or have a flat single-rate (1x) overtime policy defined in the employment contract.
Frequently Asked Questions
What is the legal overtime rate in India?
Under the Factories Act, 1948, and many state Shops and Establishments Acts, overtime is generally mandated to be paid at twice (2x) the ordinary rate of wages. However, this may vary based on the specific industry, state laws, or company policies.
Is overtime calculated on Basic Salary or Gross Salary?
Legally, the 'ordinary rate of wages' usually includes the basic salary and dearness allowance (DA), but excludes bonuses, HRA, and other special allowances. Therefore, overtime is typically calculated on the Basic + DA component.
How many hours constitute overtime?
Usually, any work done beyond 9 hours a day or 48 hours a week is considered overtime under the Factories Act. State-specific Shops and Establishments Acts may have slight variations.
Is overtime pay taxable?
Yes, overtime pay is fully taxable. It is added to your gross salary and taxed according to your applicable income tax slab.
Are IT/Software employees eligible for overtime?
In many states, IT and ITeS companies have exemptions from certain provisions of the Shops and Establishments Act, meaning overtime pay is governed by the employment contract rather than statutory 2x mandates. Many IT companies offer compensatory off (comp-off) instead of overtime pay.