Enter salary and overtime hours to get the exact 2x statutory payout under India's OSH Code, 2020 — and check whether the employee is even legally entitled to it.
Built for payroll teams and founders running attendance and overtime for Indian tech teams.
All figures are monthly, in ₹.
8 hrs/day is the OSH Code default
Decides statutory eligibility, per the OSH Code's definition of "worker"
Overtime pay due
₹0
Overtime rate is fixed at 2x the ordinary rate of wages under the OSH Code, 2020 — employers can pay more by policy, never less.
Most software engineers, team leads, and managers at a 10–150 person IT company are paid well above ₹18,000 a month and often sit in a supervisory or managerial role — which puts them outside the OSH Code's definition of "worker" and outside the statutory 2x entitlement entirely. Founders who assume every salaried employee is legally owed overtime, or every extra hour is exempt, are usually both wrong for different people on the same team. Central and several state rules under the Labour Codes were still being finalized as of this year, so treat procedural detail beyond the core 2x rate and hours limit as evolving. Clan's payroll plans link attendance data straight into payroll, so overtime hours and eligibility don't have to be tracked by hand.
| Component | Formula / rule | Notes |
|---|---|---|
| Ordinary hourly rate | (Basic + DA ÷ working days) ÷ standard hours/day | 26 days and 8 hours/day are the common payroll defaults. |
| Overtime pay | Ordinary hourly rate × 2 × OT hours | 2x is the statutory minimum; some employers pay more by policy. |
| Overtime trigger | Hours beyond 8/day or 48/week, whichever is more favourable to the worker | Calculated separately per day and per week, then compared. |
| Worker eligibility | Managerial/administrative: excluded. Supervisory ≥ ₹18,000/month: excluded. Everyone else: eligible. | "Manager" and "supervisor" aren't formally defined in the Code, so job title alone isn't conclusive. |
This calculator uses the most common Indian payroll convention. Confirm your own working-hours divisor and employee classification against your offer letter and state rules before relying on it for payroll.
Overtime is paid at twice the ordinary rate of wages for hours worked beyond the standard limit — 8 hours a day or 48 hours a week — under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, which took effect nationally on 21 November 2025. The 2x rate itself isn't new; it carries forward from the Factories Act, 1948 and state Shops & Establishments Acts. What's new is one national standard replacing separate state-by-state rules.
(Basic + DA ÷ standard working days in the month) ÷ standard hours per day, then multiplied by 2. Most Indian payroll teams use 26 working days and 8 hours a day as the divisor, matching the OSH Code's default daily limit.
No. The OSH Code's definition of "worker" excludes anyone employed in a managerial or administrative capacity outright, and supervisory employees earning ₹18,000 a month or more. Many salaried software engineers, team leads, and managers at Indian IT companies fall outside this definition and have no statutory overtime entitlement — though a company can still choose to pay it as policy.
Yes. Under the OSH Code, overtime can only be assigned with the worker's consent — an employer can no longer mandate it unilaterally the way some older state rules allowed.
Whichever is more favourable to the worker. Hours beyond 8 in a day and hours beyond 48 in a week are calculated separately for the same period, then the employee is paid on whichever count works out higher.
This tool calculates only the overtime component for hours worked beyond the standard limit. For a complete in-hand salary breakdown including PF, ESI, and professional tax, use the salary calculator. For a complete exit payout including notice recovery and leave encashment, use the full and final settlement calculator.
