Overtime Calculator (Factories Act)
Updated November 2026 · Free · No sign-up
Calculate Factories Act overtime — Section 59: work beyond 9 hours/day or 48 hours/week pays TWICE the ordinary rate of wages (basic + DA + cash allowances), with the 10.5-hour daily spreadover and quarterly OT caps.
Quick answer: Factories Act OT = 2× the ordinary rate (basic + DA + cash equivalents of concessions — not bonus/HRA) for hours past 9/day or 48/week. ₹20,800/month ordinary wages (₹100/hr at 208 hrs): OT = ₹200/hour. Caps: 10-12 hrs/day spreadover limits and state-notified quarterly OT ceilings (commonly 75-144 hrs/quarter).
The Statutory Frame
| Normal limits | 9 hours/day, 48/week (adults); spreadover ≤ 10.5 hrs/day (12 with exemption) |
| OT rate | 2× the ordinary rate — basic + DA + cash value of concessional food/amenities; excludes bonus and OT itself |
| Quarterly caps | State-notified — historically 75 hrs/quarter, many states now permit 125-144 via amendments/exemptions |
| Hourly divisor | Monthly ordinary wages ÷ 26 ÷ 8 (the standard working) |
| Registers | Form overtime registers/muster rolls are mandatory — the evidence base for claims |
Worked Example
₹20,800 basic+DA: hourly = 20,800 ÷ 26 ÷ 8 = ₹100 → 24 OT hours × 200 = ₹4,800. The common violations: paying single rate, computing on basic only (excluding DA), and "allowance" lump sums replacing the 2x math — all recoverable via the Inspector of Factories/labour court with the registers as evidence.
Who’s Covered and the New Codes
Factories Act applies to premises with 10+ workers (with power) / 20+ (without); "workers" excludes genuinely managerial staff. Shops & establishments acts extend similar OT (often 2x) to commercial establishments state-by-state. The OSH Code 2020 (pending full enforcement) carries the 2x rate forward with revised hour limits — verify your state’s current position since states have been amending limits actively.
Claims
Unpaid OT: complaint to the Inspector of Factories / claim under the Minimum Wages Act Section 20 (for scheduled employments) — limitation windows are short (6 months under MW Act claims; condonation possible), so move quickly and preserve attendance evidence. Related: substitute rest days ride on top; ESI/PF apply to OT wages.
Frequently Asked Questions
What is the Factories Act overtime rate?
Twice the ordinary rate of wages — basic + DA + cash concessions — for hours beyond 9 a day or 48 a week (Section 59).
How is the hourly rate computed?
Monthly ordinary wages ÷ 26 days ÷ 8 hours — the standard divisor; computing on basic alone (excluding DA) is the classic underpayment.
What are the overtime caps?
State-notified quarterly ceilings — historically 75 hours/quarter, with many states now permitting 125-144; daily spreadover caps at 10.5-12 hours.
Does OT attract PF and ESI?
ESI yes (OT is wages for contributions, though not for the eligibility ceiling); PF excludes OT from mandatory contribution wages.
How do I claim unpaid double OT?
Inspector of Factories complaint or Minimum Wages Act Section 20 claim — fast limitation windows; muster rolls and gate logs are the evidence.
✓ Formula verified • Last updated: November 3, 2026