Overtime Cost Calculator
Work out the overtime rate from monthly wages and see what sustained overtime costs across a team — including how many full-time equivalents of work it represents.
Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026
Your details
Ordinary wages — basic, dearness allowance and retaining allowance.
Statutory minimum is 2. Some state rules and contracts set more.
Overtime cost across the team
₹6,92,308
₹5,769 per person a month, at ₹288.46 an hour.
- Regular wages · 84%
- Overtime · 16%
The rate
- Monthly wages
- ₹30,000
- Ordinary hourly rate₹30,000 ÷ 26 days ÷ 8 hours
- ₹144.23
- Overtime rate at 2×
- ₹288.46
The cost
- Overtime hours a month, per person
- 20
- Cost per person a month
- ₹5,769
- People doing overtime
- 10
- Cost over 12 months
- ₹6,92,308
What it is buying
- Full-time equivalents of workOvertime hours ÷ a full-time schedule
- 0.96
- Overtime as a share of wages
- 19.2%
Sustained overtime at this level is a staffing decision that has already been made implicitly. This is the comparison worth having explicitly.
The Code on Wages sets overtime at not less than twice the ordinary rate of wages. States may prescribe more, and daily and weekly hour limits apply on top.
Overtime is excluded from wages for benefit purposes, but included in the 50% denominator and in wages for payment. Three different treatments of one component — a frequent source of payroll error.
The Code on Wages sets overtime at not less than twice the ordinary rate of wages. That makes the arithmetic simple and the conclusion uncomfortable: an hour of overtime costs two hours of regular time, so persistent overtime is usually more expensive than the headcount it is substituting for.
The last block converts the overtime hours into full-time equivalents, which is the comparison that actually settles the staffing argument.
Frequently asked questions
- What is the overtime rate in India?
- Not less than twice the ordinary rate of wages, under the Code on Wages. Individual state rules and contracts may set more, but not less.
- Is overtime included in wages for PF and gratuity?
- No. Overtime is expressly excluded from wages for benefit purposes. It is, however, counted in the 50% denominator under the wage definition and included in wages for payment — three different treatments of the same component, and a frequent source of payroll error.
- How do I calculate the hourly rate for overtime?
- Monthly wages divided by the number of working days in the month, divided by normal hours in a day. Then multiply by the overtime multiplier.
About this tool
Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing.
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