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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
Estimate how much of your overtime bill goes on hours nobody approved or that attendance records do not support, using your own share and wage figures.
The overtime calculator works out what a single employee is owed. This overtime leakage calculator looks the other way: at the part of the overtime bill that should not have been paid.
The share of hours that are unapproved or unsupported is your own estimate, ideally from a sample audit of overtime claims against attendance. The default is an example only.
Enter your figures, then press Calculate
Your 6 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Leakage here means overtime paid for hours that were not approved or not worked. The method values those hours at the statutory overtime rate and scales them to a year.
Leakage = (Monthly wage ÷ Working days ÷ Hours a day) × 2 × OT hours × Employees × Unapproved share × 12
Monthly ordinary rate of wages divided by working days and normal daily hours.
Twice the ordinary rate: the Code on Wages 2019 (s.14, in force from 21 November 2025) sets overtime at not less than twice the normal rate, as s.59 of the Factories Act 1948 did. Your establishment's rate may differ under other laws or policy.
Overtime rate times hours paid per employee times employees.
The bill times your estimated share of hours that were unapproved or not supported by attendance records, then times twelve.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Overtime paid for hours that were not approved in advance, were not actually worked, or are not supported by attendance records. It usually comes from manual timesheets and claims entered after the fact.
From you. A practical way is to sample a month's overtime claims and check each against approvals and punch records. The default is only an example.
Section 59 of the Factories Act 1948 sets overtime at twice the ordinary rate of wages. If your establishment is under a different law or pays a different rate, the leakage scales accordingly.
The overtime calculator computes what one employee is owed for hours worked. This one estimates what the organisation pays for hours it should not have paid.
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.
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