Find overtime pay from your normal hourly rate and hours worked.
The hourly rate is multiplied by an overtime multiplier (often 1.5x or 2x) and the number of overtime hours.
Overtime pay: Hourly rate × multiplier × overtime hours
Overtime is paid for hours worked beyond the normal daily or weekly schedule, and it is paid at a higher rate than ordinary hours. The overtime calculator multiplies your regular hourly rate by an overtime multiplier and by the number of extra hours. It answers the practical question every shift worker, supervisor and payroll clerk asks at month end: how much should the overtime line on the payslip be?
In Indian factories, the Factories Act requires overtime at twice the ordinary rate of wages, which is why this calculator defaults to 2x. Shops and establishments are governed by state laws, and many offices, hospitals, logistics firms and contract staff follow their own policy, often 1.5x or 2x. Salaried employees in managerial roles are frequently not paid overtime at all. The calculator works for any multiplier from 1x to 5x.
1. Find your ordinary hourly rate. For a monthly wage, divide the monthly wage by the number of working hours in the month, for example 26 days × 8 hours = 208 hours.
2. Count only the hours worked beyond the normal limit set by law or your contract, day by day or week by week as your employer measures it.
3. Choose the multiplier from law or policy, for example 2 for factory work.
4. Overtime rate per hour = Hourly rate × Multiplier.
5. Overtime pay = Hourly rate × Multiplier × Overtime hours.
6. Add this to the regular wage for the month; tax and PF treatment follow your employer's payroll rules.
Overtime premiums exist for two reasons. They compensate the worker for fatigue and lost personal time, and they make long hours expensive enough that employers prefer to hire more staff rather than stretch the existing ones. The multiplier applies to the whole overtime hour, not only to the extra part. At 2x, each overtime hour pays two ordinary hours. So overtime pay = rate × multiplier × hours, and the premium portion alone is rate × (multiplier − 1) × hours.
The biggest source of error is the hourly rate, not the multiplication. For a monthly wage, the divisor matters. Dividing by 30 days × 8 hours gives a lower rate than dividing by 26 working days × 8 hours. Under factory law, the ordinary rate of wages includes basic and dearness allowance and some cash allowances, but excludes bonus and certain other payments. Check your standing orders or policy for the exact wage elements and divisor your employer uses, then use that rate here.
Overtime is triggered when work crosses a threshold, and laws usually set both a daily and a weekly threshold. An hour counts as overtime if it breaks either limit, so a worker who does 10 hours on one day may earn overtime even if the weekly total looks normal. Laws also cap the total overtime allowed in a quarter. The calculator does not decide which hours qualify. Count qualifying hours first, from attendance records, then enter the total.
Sunil operates a CNC machine at an auto-parts factory in Chakan. His ordinary wage works out to ₹150 an hour, and this month he worked 26 overtime hours, paid at twice the ordinary rate.
Answer: Overtime pay ₹7,800
Dividing a monthly salary by 30 × 8 when the employer's rule uses 26 working days, which understates the hourly rate.
Counting only weekly totals and missing days when the daily limit was crossed.
Applying the multiplier only to the premium portion and then adding ordinary pay again, which double counts.
Assuming overtime rules for factory workers apply to salaried managers, who are often excluded.
Checking the overtime line on a monthly payslip.
Supervisors estimating the cost of extra shifts during peak season.
Contract and gig workers pricing extra hours for a client.
HR teams comparing the cost of overtime with hiring temporary staff.
What overtime multiplier is standard?
It depends on your company's policy and the labour law that applies. 1.5x to 2x your normal hourly rate is common, but check your own employment terms.