How overtime is calculated in India
First find your ordinary hourly rate. The standard method divides monthly Basic + DA by 208 — that's 26 working days × 8 hours a day. (Some workplaces use 30 days, i.e. 240.)
Under Section 59 of the Factories Act, 1948, a worker who works more than 9 hours in a day or 48 hours in a week is entitled to overtime at twice the ordinary rate of wages. So:
- Hourly rate = (Basic + DA) ÷ 208
- Overtime rate = hourly rate × 2
- Overtime pay = overtime rate × overtime hours
What counts as "ordinary rate of wages"
It means basic wages plus dearness allowance (DA) and admissible allowances — but not bonus and not overtime wages itself. That's why this calculator asks for Basic + DA, not your full gross with bonus.
Frequently asked questions
- What is the overtime rate in India?
- Twice (2×) the ordinary rate of wages, under Factories Act Section 59.
- When does overtime start?
- Beyond 9 hours in a day or 48 hours in a week.
- How is the hourly rate found?
- (Basic + DA) ÷ 208 (26 days × 8 hours). The calculator does it for you.
- Is the amount net?
- No, it's gross — before income tax, PF and ESI.
Source: The Factories Act, 1948, Section 59; Code on Wages, 2019. State Shops & Establishments Acts may vary.