Free Overtime Calculator 2026

Indian statute is clear: overtime is calculated on the ordinary rate of wages, which means basic + dearness allowance. HRA, conveyance, special allowances, and bonuses are excluded. Some progressive employers voluntarily compute on gross, but it is not the statutory floor.

Under Section 59 of the Factories Act, 1948, overtime is paid at twice the ordinary rate of wages. Most state Shops & Establishments Acts mirror this 2× rate, though a few permit 1.5× for non-factory establishments.

The Factories Act caps overtime at 50 hours per quarter (i.e. ~16-17 hours per month on average) for adult workers. Spread-over (regular + overtime) cannot exceed 10.5 hours per day.

PF is computed on basic + DA, not on overtime, so OT pay does not increase the PF deduction or employer contribution. ESI, however, is computed on gross earnings including overtime, so when OT is paid the ESI contribution rises proportionally for that month.

Most Indian payroll teams use a 26-day divisor (30 calendar days minus 4 paid weekly offs) to derive the daily wage, and then 8 hours per day to derive the hourly rate. The result is 208 hours per month. We allow 22-day and 30-day variants.

Generally no. The Factories Act excludes persons holding positions of supervision or management from OT entitlement, though courts have ruled that the test is functional, not designation-based.

This is a planning and estimation tool. For payroll-of-record we recommend using Super Payroll or a comparable system that reconciles OT against muster rolls and your specific state’s exemption notifications.

Maintain a daily attendance / muster roll capturing punch-in and punch-out times, with separate columns for regular and overtime hours. Indian labour inspectors typically cross-check muster rolls against payslips.