Overtime Pay Calculator
How to Use:
- Enter your Monthly Basic Pay (INR).
- Enter the number of overtime hours worked.
- Click on Calculate to find your Overtime Pay as per law.
- You can Download PDF for record.
Formula: Overtime Pay = 2 × (Monthly Basic Pay ÷ 26 ÷ 8) × Overtime Hours
Law Reference: This calculation follows the Factories Act, 1948 and labour law norms in India.
Overtime Pay – Complete Guide for Employees
Overtime pay is the additional amount paid to employees for working beyond the standard working hours defined by labour laws. In India, the Factories Act, 1948 mandates that any employee who works beyond 9 hours a day or 48 hours a week is entitled to overtime wages.
What is Overtime Pay?
Overtime pay compensates employees for extra work done beyond normal duty hours. As per law, the overtime wage rate must be twice the ordinary rate of wages, including basic salary and dearness allowance.
Formula for Overtime Calculation
The formula is: Overtime Pay = 2 × (Basic Pay ÷ 26 ÷ 8) × Overtime Hours. Here:
- 26 = Average working days in a month
- 8 = Standard working hours per day
Legal Provisions in India
Under the Factories Act, 1948, employees working overtime should receive twice the regular wage rate. This is mandatory, and employers cannot avoid paying overtime. Failure to comply can lead to legal action and penalties.
Taxation on Overtime Pay
Overtime pay is considered as part of the salary and is fully taxable under the Income Tax Act. It falls under the ‘Income from Salary’ head.
Why Knowing Overtime Pay is Important?
Calculating overtime pay ensures transparency and helps employees claim their rightful earnings. Employers also benefit from maintaining compliance with labour laws.
Conclusion
Use this calculator to estimate your overtime pay accurately. It is based on the official calculation formula as per Indian labour law. Always consult your HR department for the exact amount as company policies may vary.