India Factory Overtime Wage Calculator
Factory overtime is paid at twice the ordinary rate of wages for work beyond the daily or weekly limit. Use this tool to price overtime for a worker or a whole line and see how quickly the bill climbs.
Your numbers
Basic plus DA and, where the Act so treats it, cash allowances. Exclude bonus and overtime itself.
Your results
Overtime hour limits, quarterly caps and wage definitions differ by state rules and the new labour codes. Confirm your own notification before payroll.
Plant overtime cost vs overtime hours per worker
Sweeps Overtime hours per worker per month from 0 to 100, holding your other inputs fixed.
Overtime vs payroll reconciliation
Optional review of how to match shop-floor attendance to ERP payroll automatically.
Optional. The tool and every export work without this. No spam.
How to use it
Enter the monthly ordinary wage, the divisor used by your payroll, normal daily hours and the number of overtime hours. The calculator converts wage into an hourly rate, applies the multiple and gives pay per worker and per plant. Use the chart to compare scenarios such as a 10-hour month against a 60-hour peak month.
- Choose the divisor that matches your payroll rules
- Include only ordinary wages in the base
- Check the quarterly overtime cap in your state
The method
Section 59 of the Factories Act requires overtime wages at twice the ordinary rate for hours beyond nine in a day or forty-eight in a week. Hourly rate equals monthly wage divided by divisor days and then by normal hours. Overtime pay equals hourly rate times the multiple times overtime hours. Fractions of half an hour or more are typically counted as one hour.
Worked example
A worker earning Rs 24,000 with a 26-day divisor and 8-hour day has an ordinary hourly rate of 24,000 / 26 / 8 = Rs 115.38. At 2x the overtime rate is Rs 230.77. Twenty overtime hours give Rs 4,615 per worker. For thirty workers the plant pays about Rs 1.38 lakh in the month.
Common mistakes
Many plants pay overtime on Basic only while the law may include DA and cash allowances in ordinary wages. Others calculate with calendar days rather than the divisor, which understates the rate. Overlooking the double rate on weekly rest days and holidays is another issue. Align your payroll configuration in the ERP with the legally defined wage base.
Frequently Asked Questions
What is the overtime rate in a factory?
Under the Factories Act, overtime is twice the ordinary rate of wages. Some states and wage agreements specify higher multiples, and the new labour codes also retain the double rate principle. Check your state notification and settlement terms.
How is the hourly rate derived?
Divide the monthly ordinary wage by the divisor days, commonly 26, and then by normal hours in the day, commonly 8. The resulting rate is multiplied by two for overtime hours worked.
Is there a limit on overtime hours?
Yes. State rules and the Act cap total overtime in a quarter, and daily and weekly working hours are limited. Exceeding the cap needs permission. Track hours in your attendance system to avoid breaches.
Are contract workers covered?
Contract labour employed in a factory is generally entitled to the same overtime protection, and the principal employer is ultimately responsible if the contractor defaults. Keep overtime registers for all workers on the premises.
If overtime data lives in time clocks and shift schedules, we can reconcile it against payroll in your ERP using read-only queries.
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