Overtime (OT) Calculator
Work out overtime pay from OT hours, the worker’s rate and your OT convention — single rate, 1.5× or double. Derive the hourly rate from a daily wage automatically.
How overtime is calculated
Overtime Pay = OT Hours × Hourly Rate × Multiplier. The hourly rate for a daily-wage worker is the daily rate divided by shift hours (usually 8). So a ₹480/day worker has an hourly rate of ₹60; 12 hours of OT at single rate is ₹720, and at double rate ₹1,440.
Conventions differ by trade: many workshops and sites pay single rate for OT, while the Factories Act prescribes double rate for registered factories. What matters at settlement is that the convention was agreed before the OT was done, and that OT hours are recorded daily — reconstructed-from-memory OT is the most disputed number in labour payments.
Frequently asked questions
How do I get the hourly rate from a daily wage?+
Divide the daily rate by standard shift hours, usually 8. A ₹400/day wage gives ₹50/hour. This calculator does that conversion for you.
Is overtime always paid at double rate?+
No. Double rate applies to factories registered under the Factories Act. In informal trades, single rate or 1.5× is common practice — it depends on what employer and worker agreed.
What is the best way to record OT hours daily?+
Record them at attendance time, not at settlement time. The Laborbook app lets you add OT hours while marking daily attendance, so month-end salary already includes correct OT.
Record OT with attendance, not from memory
Laborbook adds overtime while marking daily hajri and includes it in each worker’s salary automatically.