Overtime Pay Calculator India — Wages Under Factories Act 2026

Last updated: 29 April 2026 Reviewed by Arjun Mehta, CA

Under the **Factories Act 1948**, if a worker works more than 9 hours a day or 48 hours a week, they are entitled to overtime wages at twice the ordinary wage rate. For IT/ITES employees under the Shops and Establishments Act, overtime rules vary by state. This calculator computes overtime wages based on your basic daily/hourly rate and extra hours worked.

Monthly Basic Salary (₹)

Overtime Hours per Month

Working Days per Month

Hourly Rate —

Overtime Rate (2x) —

Total Overtime Pay —

Total Monthly Salary with OT —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹30,000 basic — 20 OT hours/month

Hourly rate = 30,000 ÷ (26 × 8) = ₹144/hour. OT rate = ₹288/hour. 20 OT hours = ₹5,769. Total monthly = ₹35,769. Annual OT income = ₹69,228 (if consistent) — adds meaningful income for factory workers.

Shift worker calculation

A factory worker earning ₹20,000 basic working 30 OT hours/month at ₹192/hour OT rate earns ₹5,769 OT pay. Total ₹25,769/month. At 12 months = ₹3,09,231 annual income — below taxable limit, so no TDS.

Frequently Asked Questions

What is the overtime rate in India under labour law?

The Factories Act 1948 mandates overtime pay at twice the ordinary rate for factory workers. Normal working hours: 48 hours/week (9 hours/day). Any work beyond this is overtime. The new Labour Codes retain this double-rate provision. IT/services employees typically follow company policy.

Is overtime pay taxable?

Yes. Overtime pay is fully taxable as part of salary income. There is no exemption for overtime earnings. TDS on overtime is calculated by your employer based on projected annual income. The tax is straightforward — overtime is just additional salary.

Do IT/software employees get overtime?

Most IT professionals are categorised as 'management staff' or 'skilled workers' exempt from overtime provisions. However, some IT companies pay OT voluntarily or offer comp-off (compensatory off) instead of payment. Start-ups often have no formal OT policy.

Is the Overtime Calculator free?

Yes, completely free on CalcPhi with no registration.

Are my inputs stored?

No. All calculations run in your browser. Your data is never stored.

Is it mobile-friendly?

Yes. Works on all modern smartphones and tablets.