Indian factory and shops legislation generally requires overtime at twice the ordinary rate of wages. Getting the ordinary hourly rate right is the part worth taking care over.
Factories Act default: 2× normal hourly rate. Configurable.
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Derive the ordinary hourly rate — monthly wages ÷ (working days × daily hours).
Apply the statutory multiplier, ordinarily 2× under the Factories Act for work beyond nine hours a day or forty-eight a week.
Multiply by overtime hours worked in the period.
On monthly wages of ₹26,000 across 26 days of 8 hours, the ordinary rate is ₹125 an hour. Ten overtime hours at double rate come to ₹2,500.
Under the Factories Act, yes for hours beyond the daily or weekly limit. Shops & Establishments Acts vary by state, and some contracts pay more than the statutory minimum.
Employees in a genuinely supervisory or managerial capacity are usually outside the overtime provisions, but the test is the actual role, not the job title.
Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.