| Date | Worked | Std Hrs | OT Hrs | Day Type | Mult | OT Pay |
|---|
Results
| Metric | Value |
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Your OT results will appear here
Fill in your wage & OT hours, then click Calculate OTHow It Works
Select Quick OT for a single entry, Daily/Weekly Batch for multi-day rollup, or Monthly Batch for category-wise totals. Set your wage basis (hourly/daily/monthly).
Input your OT hours and select the applicable multiplier (2× for Factories Act, 1.5× for many private firms). Choose day type and add night shift premium if applicable.
See ordinary hourly rate, OT hourly rate, total OT pay, and a real-time Factories Act compliance check for daily, weekly, and quarterly OT limits.
OT Rules by Establishment Type
| Establishment | Governing Law | OT Threshold | OT Rate | Max OT Cap |
|---|---|---|---|---|
| Factories | Factories Act 1948 | >9 hrs/day or >48 hrs/week | 2× wages | 50 hrs/quarter |
| Shops (Maharashtra) | Maharashtra S&E Act | >9 hrs/day or >48 hrs/week | 2× wages | 125 hrs/quarter |
| Shops (Karnataka) | Karnataka S&E Act | >9 hrs/day or >48 hrs/week | 2× wages | 50 hrs/quarter |
| Shops (Tamil Nadu) | TN S&E Act | >8 hrs/day or >48 hrs/week | 2× wages | 48 hrs/quarter |
| Shops (Delhi) | Delhi S&E Act | >9 hrs/day or >48 hrs/week | 2× wages | 54 hrs/quarter |
| Shops (West Bengal) | WB S&E Act | >9 hrs/day or >48 hrs/week | 2× wages | 120 hrs/quarter |
| Mines | Mines Act 1952 | >9 hrs/day or >48 hrs/week | 2× wages | 50 hrs/quarter |
| IT / ITeS (Exempted) | State Notifications | Company Policy | 1.5× to 2× | Policy-based |
| Contract Labour | CLRA Act | Per principal employer | Same as principal | Same as principal |
Understanding Overtime Pay in India
What Is Overtime?
Overtime is work done beyond the standard daily or weekly working hours set by law or employment contract. In India, the Factories Act, 1948 is the primary legislation governing overtime for factory workers. Shops and Commercial Establishments are covered by state-specific Shops and Establishment Acts, which follow similar thresholds. Standard working hours under the Factories Act are 9 hours per day and 48 hours per week - any work beyond these limits is overtime and must be compensated at double the ordinary rate.
What Counts as "Ordinary Wages" for OT?
Under the Factories Act, "ordinary rate of wages" includes Basic Salary + Dearness Allowance + any cash value of benefit concomitant to employment. It typically excludes: HRA, bonus, overtime itself, and employer PF contributions. For practical OT calculations, most payroll teams use Basic + DA to determine the hourly rate and apply the 2× multiplier.
OT Rate Multipliers Explained
The Factories Act mandates 2× (double wages) for overtime. Many private companies that are IT-sector or management-exempt use 1.5× based on company policy. Weekend and holiday overtime is typically at a higher multiplier (2× to 3×) to compensate for disruption to weekly rest. Night shift OT carries an additional premium (commonly 10-25%) on top of the base OT rate.
Maximum OT Limits & Compliance
The Factories Act Section 65 caps overtime at 50 hours per quarter (approximately 16-17 hours per month). Exemptions can be granted under Section 65(2) for urgent work, raising the cap to 75 hours/quarter with government approval. The daily total (regular + OT) cannot exceed 10.5 hours under Section 54, and the weekly total cannot exceed 60 hours. Violations attract penalties including prosecution of the occupier and manager of the factory.
New Labour Codes (OSH Code 2020)
The Occupational Safety, Health and Working Conditions Code, 2020 consolidates 13 labour laws including the Factories Act. It retains the 2× OT rate but introduces provisions for daily working hour flexibility via agreements. As of 2026, the Code has been enacted but is pending state-level rules notification before it comes into force. Until then, the Factories Act 1948 and existing state Shops Acts continue to apply.
Frequently Asked Questions
What is overtime pay in India?
Overtime pay is compensation for work performed beyond standard working hours. Under the Factories Act 1948, any work beyond 9 hours per day or 48 hours per week must be paid at twice the ordinary rate. Most state Shops and Establishment Acts follow the same 2× standard.
Is 2× the mandatory OT rate under the Factories Act?
Yes. Section 59 of the Factories Act, 1948 explicitly requires overtime wages at "twice the ordinary rate of wages." This 2× rate is the statutory minimum for covered establishments - employers can pay more (e.g. 2.5× or 3×) but cannot pay less.
How is overtime calculated for monthly-salaried employees?
Per Day Rate = Monthly Salary ÷ Working Days per Month. Per Hour Rate = Per Day Rate ÷ Standard Hours per Day. OT Pay = OT Hours × Per Hour Rate × Multiplier (2× for Factories Act). Example: ₹25,000/month ÷ 26 days ÷ 8 hrs = ₹120.19/hr. At 2×: OT rate = ₹240.38/hr. For 3 OT hours: ₹721.15.
What are the maximum overtime hours allowed per quarter?
Under the Factories Act 1948 (Section 65), the limit is 50 OT hours per quarter. State Shops Acts vary: Maharashtra allows 125 hrs/quarter, West Bengal 120 hrs, Delhi 54 hrs, Tamil Nadu 48 hrs. Exceeding these limits requires government permission and attracts penalties.
Are IT companies required to pay overtime?
Most IT/ITeS companies are exempt from the Factories Act (they are not factories). They are covered by state Shops and Establishment Acts, where many states have granted partial exemptions to IT firms. In practice, most salaried IT employees (classified as managerial or supervisory) are not entitled to statutory overtime. Entry-level support and BPO staff may be covered. Check your specific state notification.
Is overtime pay taxable?
Yes. Overtime pay is treated as part of salary income and is fully taxable at your applicable income tax slab rate under both the old and new tax regimes. There is no specific exemption for overtime wages under the Income Tax Act, 1961.
Is PF & ESI deducted on overtime pay?
Traditionally, PF is NOT deducted on overtime wages per EPFO circulars - overtime wages are not considered "basic wages" for PF calculation. ESI, however, is deducted on all earnings including overtime if the employee's gross wages are within the ESI threshold (currently ₹21,000/month). Check your company policy, as practices vary. This calculator provides a toggle to include deductions if your company policy requires it.
What is the OT rule under the new Labour Codes?
The Occupational Safety, Health and Working Conditions Code (OSH Code), 2020 retains the 2× OT rate. It also allows daily working hour flexibility through employer-employee agreements (potentially up to 12-hour days). The Code is enacted but awaiting state-level rules notification. Until states notify their rules, the Factories Act 1948 continues to apply.
Is overtime the same on weekdays and weekends?
Not necessarily - the statutory minimum (2×) applies regardless of day type. However, many companies pay higher rates on weekends (2×), national holidays (2.5× or 3×), or weekly rest days, based on company policy. This calculator allows you to set per-row multipliers in batch mode to account for different day-type rates in a single week's calculation.
What is night shift allowance vs OT?
Night shift allowance is a premium paid for working during nighttime hours (typically 10 PM to 6 AM), regardless of total hours worked. OT is additional compensation for working beyond standard hours. They are separate entitlements - an employee working a 9-hour night shift may receive both: OT for the extra 0.5 hours beyond 8.5 standard + night shift premium for the unsociable hours. This calculator applies both simultaneously in its multiplier + premium calculation.
Are managers eligible for overtime?
Under the Factories Act, workers in managerial or supervisory roles are generally excluded from overtime provisions. The Act distinguishes between "workers" (who are entitled to OT) and managerial/supervisory employees (who may not be). In practice, most mid-to-senior management positions are exempt. Lower-level supervisors who primarily do manual work may still qualify as "workers" and be entitled to OT.
How is OT calculated for daily-wage workers?
Daily wage workers are simpler: Per Hour Rate = Daily Wage ÷ Standard Hours per Day. OT Pay = OT Hours × Per Hour Rate × 2 (or applicable multiplier). For example, a daily wage of ₹500 ÷ 8 hrs = ₹62.50/hr ordinary rate. At 2×: OT rate = ₹125/hr. For 2 OT hours: ₹250 OT pay. Select "Daily" as the wage basis in this calculator to compute this automatically.