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BizzFieldPayroll

ATTENDANCE CALCULATOR

Overtime priced on the right wage base.

Most overtime errors are not about the multiple. They are about which wage the multiple is applied to, and how many days the month is divided by.

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The wage base your policy uses for overtime.

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Indian labour law generally prescribes twice the ordinary rate for covered workers.

Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.

Overtime payable

₹4,231

Ordinary hourly rate

₹106

Overtime hourly rate

₹212

Overtime hours

20

Overtime earnings against the regular monthly wage

Regular wage₹22,000
Overtime₹4,231

Full breakdown

Monthly wage₹22,000
Ordinary hourly rate₹106
Overtime rate applied₹212
Overtime payable₹4,231

Step-by-step calculation

1Ordinary hourly rate₹22,000 ÷ 26 days ÷ 8 hours₹106
2Overtime rate₹106 × 2₹212
3Overtime payable₹212 × 20 hours₹4,231

HOW IT WORKS

The formula used

Derive the ordinary hourly rate first, then apply the multiple.

Ordinary hourly rateMonthly wage ÷ days basis ÷ hours per day
Overtime hourly rateOrdinary hourly rate × multiple
Overtime payableOvertime hourly rate × overtime hours

UNDERSTANDING IT

About the overtime calculator

Overtime is one of the few payroll components where the statutory position is unusually clear on the rate and unusually vague in practice on the base. Indian labour law generally prescribes payment at twice the ordinary rate of wages for covered workers.

The complication is what counts as the ordinary rate. Applying the multiple to gross salary produces a very different result from applying it to basic plus dearness allowance. Employers should define the base in policy and apply it consistently.

The days divisor matters too. Dividing by 26 working days produces a higher hourly rate than dividing by 30 calendar days, and the difference compounds across a workforce with substantial overtime.

Worked example

Take a monthly wage of ₹22,000 over 26 days at 8 hours a day, with 20 overtime hours at twice the rate.

The ordinary hourly rate is ₹22,000 ÷ 26 ÷ 8, which is ₹105.77. At twice the rate, overtime is ₹211.54 an hour. For 20 hours, overtime payable is ₹4,231.

WHY IT HELPS

What this calculator is good for

Apply a consistent base

Fix the wage base and divisor once, and apply them across the workforce.

Link to attendance

Overtime hours should come from attendance records rather than a parallel sheet.

Control the cost

Seeing the effective hourly cost makes overtime versus hiring a real comparison.

WATCH OUT

Common mistakes

These are the errors that most often produce a wrong number.

  • Applying the overtime multiple to gross salary when policy specifies basic plus dearness allowance.

  • Mixing 26-day and 30-day divisors between departments.

  • Paying overtime at the ordinary rate rather than the statutory multiple for covered workers.

  • Collecting overtime hours on paper and keying them in separately from attendance.

HR TIPS

Practical guidance

Approve before paying

Overtime should be approved by the reporting manager before it enters the cycle.

Watch the statutory treatment

Overtime is generally included in ESI wages but excluded from provident fund basic wages.

Review recurring overtime

Persistent overtime in one team is usually a staffing signal, not a payroll one.

QUESTIONS

Overtime Calculator — frequently asked

For workers covered by the relevant labour legislation, overtime is generally payable at twice the ordinary rate of wages. Specific provisions vary by statute and state rules.

Overtime is generally included in ESI wages but excluded from provident fund basic wages, so the two statutory treatments differ.

Both are used. A 26-day divisor treats the month as working days and yields a higher hourly rate. The choice should be stated in policy and applied consistently.

Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.

Run this on real payroll, not a calculator

Stop calculating payroll in a spreadsheet. BizzField Payroll runs the whole cycle, applies every statutory rule and files what regulators expect.