Use this free overtime calculator to work out overtime pay for any worker in India. Enter the monthly wage and overtime hours, and get the hourly rate and overtime amount at twice the ordinary rate, the standard for overtime calculation under the labour codes.
Overtime Calculation Formula
Overtime pay = (monthly wage ÷ 26 ÷ 8) × 2 × overtime hours
- Find the daily wage. Divide the monthly wage by 26 working days.
- Find the hourly rate. Divide the daily wage by 8 working hours.
- Double it. Overtime is paid at twice the ordinary rate.
- Multiply by overtime hours.
Overtime Calculation Examples
| Monthly wage | Hourly rate | OT rate (2×) | OT hours | Overtime pay |
|---|---|---|---|---|
| ₹15,600 | ₹75 | ₹150 | 8 | ₹1,200 |
| ₹20,800 | ₹100 | ₹200 | 10 | ₹2,000 |
| ₹26,000 | ₹125 | ₹250 | 12 | ₹3,000 |
| ₹31,200 | ₹150 | ₹300 | 20 | ₹6,000 |
Overtime Rules in India Under the New Labour Codes
Since 21 November 2025, overtime in most workplaces is governed by the Occupational Safety, Health and Working Conditions Code, 2020.
| Rule | What it says |
|---|---|
| When overtime starts | After 8 hours in a day or 48 hours in a week |
| Overtime rate | Twice the ordinary rate of wages |
| Overtime cap | 125 hours in a quarter |
| Paid when | Within the same wage period |
States can set details such as spread-over and intervals, and some sectors have their own rules. Shops and outlets may also fall under your state’s shops and establishments law. Check with your labour consultant for your exact case.
What Counts in the “Ordinary Rate of Wages”?
Use the wage components your state rules and your appointment terms treat as wages, typically basic pay plus dearness allowance (DA). Bonus and the overtime pay itself are not included. If you’re unsure which allowances to include, confirm with your consultant before running payroll.
Daily-Wage and Piece-Rate Workers
For daily-wage workers, start from the daily wage instead of the monthly wage: hourly rate = daily wage ÷ 8. For piece-rate workers, the daily rate is usually based on average daily earnings over the wage period. The overtime rate is still twice the hourly figure.
Common Overtime Calculation Mistakes
- Dividing by 30 days when your policy uses 26.
- Paying overtime at the normal rate instead of double.
- Leaving overtime off the payslip, which causes disputes.
- Not tracking the 125-hour quarterly cap.
- Calculating from memory instead of from daily attendance records.
Stop Calculating Overtime by Hand
A calculator works for one worker. For a whole factory or retail chain, every shift and every worker, overtime needs to come straight from attendance. Mera Udyog’s payroll software for India records overtime as it happens and adds it to salary automatically.
Automate Overtime Calculation for Your Whole Team
Bookmark this overtime calculator for one-off checks. Then try Mera Udyog free for 7 days and let overtime calculation happen from attendance, for every worker, every shift.
This guide is general information, not legal advice. Labour rules differ by state and change over time, so confirm the details for your business with your CA or labour consultant.