Overtime Calculation Formula:
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Under the Factories Act in India, overtime is paid at double the normal rate for hours worked beyond 9 per day or 48 per week. This calculator helps determine the correct overtime compensation.
The calculator uses the standard overtime formula:
Where:
Explanation: The calculation accounts for the legal requirement that overtime in India must be paid at twice the normal rate.
Details: Accurate overtime calculation ensures compliance with labor laws, prevents wage disputes, and helps in proper payroll management.
Tips: Enter the regular hourly wage in INR and the number of overtime hours worked. Both values must be positive numbers.
Q1: What is the legal overtime rate in India?
A: Under the Factories Act, overtime must be paid at double the normal rate (2x).
Q2: When does overtime apply in India?
A: For hours worked beyond 9 per day or 48 per week in factories covered by the Act.
Q3: Are there exceptions to the 2x rate?
A: Some states or industries may have different rules, but 2x is the standard under central legislation.
Q4: How should overtime be recorded?
A: Employers must maintain accurate records of all overtime hours worked as per labor laws.
Q5: Does this apply to all employees?
A: The Factories Act applies to factory workers; other employees may be covered under different labor laws.