Loading page
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Overtime at twice the ordinary rate of wages, the Factories Act rule for work beyond nine hours in a day or forty-eight in a week.
Under the Factories Act, a worker who works more than nine hours in a day or more than forty-eight hours in a week is entitled to wages for the extra time at twice the ordinary rate of wages. The multiplier is set by statute. How the hourly rate is derived from a monthly wage is not uniform, so this calculator asks you for the basis instead of assuming one.
Establishments outside the Factories Act, shops, offices and commercial establishments, are governed by the Shops and Establishments Act of their state, whose overtime provisions vary. Check which applies before relying on the figure.
Enter your figures, then press Calculate
Your 4 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
The statutory multiplier is fixed; the hourly rate it multiplies is not. So the working is shown in that order, the rate you supply, then the doubling the Act requires.
Overtime pay = 2 × (Monthly ordinary wages ÷ Working days ÷ Normal hours) × Overtime hours
Under the Factories Act, overtime is work beyond nine hours in a day or forty-eight hours in a week.
Basic wages plus the allowances that count as ordinary wages. Bonus and wages for earlier overtime are excluded.
Divide by the working days and normal hours your establishment applies. This basis is an input here rather than an assumption, because it is not uniform.
Twice the ordinary hourly rate, for each overtime hour.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
After nine hours of work in a day or forty-eight hours in a week. Hours beyond either limit are paid at twice the ordinary rate of wages.
Because the Act fixes the multiplier, but a single divisor for converting a monthly wage into an hourly one is not something this calculator can assume for every establishment. Entering your own basis keeps the arithmetic accurate and checkable.
Not necessarily. Offices and shops fall under the Shops and Establishments Act of their state, which sets its own overtime rules. The Factories Act rule shown here applies to workers in factories.
Overtime pay = 2 × (monthly ordinary wages ÷ working days ÷ normal hours per day) × overtime hours. The daily, hourly and overtime rates are each shown on their own line.
Basic wages plus the allowances that count as ordinary wages. Bonus and wages for earlier overtime are excluded.
The one your establishment applies. Many use 26, which is the calculator's default, but confirm yours before relying on the figure.
No. Statutory limits on the total overtime a worker may do in a quarter are not checked here.
Only the twice-the-ordinary-rate multiplier and the nine-hour daily and forty-eight-hour weekly limits. The divisor for the hourly rate is yours to supply.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
14-day free trial · Full access to all 12 modules · Zero implementation fee · Cancel anytime