An overtime estimate is easiest to audit when regular and overtime pay are calculated separately. Applying the premium to every hour can materially overstate pay.
Core formulas
Regular pay = regular hours × hourly rate
Overtime pay = overtime hours × hourly rate × overtime multiplier
Worked example
A worker records 44 paid hours: 40 regular and 4 overtime. At ₹500 per hour and a 1.5× multiplier, regular pay is ₹20,000 and overtime pay is ₹3,000. Estimated gross pay is ₹23,000 before deductions.
Separate time categories
Paid leave, holidays, on-call time, bonuses, and shift premiums may follow different rules. Calculate each category separately and keep unpaid breaks out of paid hours.
Use the Salary Hike Calculator for base-pay comparisons and the Percentage Calculator to check premium rates.
Common mistakes
- Applying the multiplier twice.
- Writing 7 hours 45 minutes as 7.45 hours.
- Ignoring different weekend or holiday treatment.
- Confusing gross pay with take-home pay.
- Using an assumed overtime threshold without checking policy.
Frequently asked questions
Is overtime always 1.5×?
No. Eligibility, thresholds, and multipliers depend on law, contract, and job category. This is a calculation guide, not legal advice.
Does this estimate net pay?
No. Tax, benefits, and other deductions are not included.
What if rates change during the week?
Calculate each rate period separately, then apply the governing overtime method.
Example with two pay rates
Assume 32 regular hours at ₹500, 8 regular hours at ₹600 for a specialised shift, and 4 overtime hours. Do not choose an overtime base rate without checking the governing policy. First calculate each regular-rate block, then apply the required weighted or specified overtime method.
Keep gross earnings, reimbursements and deductions in separate sections. A travel reimbursement may be paid with wages but is not another worked hour. Similarly, a bonus can affect statutory overtime calculations in some systems. The simple formula is useful for planning, while the approved payroll rule controls the final payslip.
Quick verification
Recalculate the week from raw clock records and compare it with the payslip’s regular and overtime lines. A mismatch may come from break treatment, rounding, a different workweek boundary or an eligibility rule—not necessarily from multiplication.