Payroll and overtime calculator
See what overtime really costs each month and each year, what loss of pay deducts, and how much one wrongly recorded hour adds up to across your team.
Your pay basis
Starting values are examples. Replace each one with your own.
The wage overtime is paid on. In India this is often basic plus DA.
Some companies use 26, others 30 or the calendar days.
A typical month
Twice the ordinary rate is common for factory workers in India.
Loss of pay (LOP), per employee.
What it costs
- Pay for one overtime hour
- ₹200 · ordinary ₹100 an hour
- Overtime per employee a month
- ₹2,400
- Overtime for the team
- ₹96,000 a month
- Overtime for the team a year
- ₹11,52,000
- Loss of pay deducted a month
- ₹32,000 · ₹800 each
- Cost of one wrong overtime hour per employee
- ₹8,000 a month
How this is worked out
- Day’s pay = monthly wage ÷ days in a month for pay.
- Hourly pay = day’s pay ÷ normal hours in a day.
- Overtime hour = hourly pay × overtime rate.
- Team overtime = overtime hour × hours per employee × 40 employees, and × 12 for a year.
- Loss of pay = day’s pay × unpaid days, per employee.
- One wrong hour = overtime hour × employees.
Every number is your own input. Overtime and loss-of-pay rules differ by law, state and company policy; check yours.
AIMS HRMS takes overtime and absences from biometric attendance, so payroll is not built from hours typed in later. See payroll.
Questions
How is overtime pay calculated?
Work out the ordinary hourly rate (monthly wage ÷ days in the pay month ÷ normal hours in a day), then multiply by the overtime rate and the overtime hours. The calculator shows each step.
What overtime rate applies in India?
For workers covered by the Factories Act, overtime is paid at twice the ordinary rate of wages, which is usually basic pay plus dearness allowance. Shops and establishments follow state rules, and many companies set their own policy. Check what applies to you.
Should a day’s pay be based on 26 or 30 days?
Both are used. Some companies divide the monthly wage by 26 working days, others by 30 or by the calendar days in the month. It changes overtime and loss-of-pay amounts, so use the basis in your own policy.
How is loss of pay (LOP) worked out?
A day’s pay multiplied by the days an employee was absent without approved paid leave. The calculator never deducts more days than the pay month has.
Guides on attendance and payroll
- From biometric attendance to payroll without retyping
How to run monthly payroll from biometric attendance, approved leave and overtime, without copying numbers into a spreadsheet.
- What to look for in HRMS software
A buyer's checklist for HRMS software, from hiring and attendance to payroll, incentives and exits, for businesses with branches and field staff.
- Paying sales and service incentives from real results
Tie sales and service incentives to the results already recorded in your system, so they are fair, quick to calculate and hard to dispute.