# Overtime pay calculator: how to work out your hourly rate, the multiplier and what extra hours are worth

> Overtime is paid at a higher rate than normal hours, but the final amount depends on how your hourly rate is worked out. This guide shows the formula, how the choice of monthly hours changes the result, and what common multipliers mean.

Published 2026-10-09 by Toolcloak. 3 minute read. Original: https://toolcloak.pages.dev/articles/overtime-pay-calculator-how-to-work-out-your-hourly-rate-the-multiplier-and-what-extra-hours-are-worth
Related free tool: [Overtime Pay Calculator](https://toolcloak.pages.dev/tools/overtime-pay-calculator)

**Overtime** is work beyond your normal hours, and most rules pay it at a higher rate than ordinary time. The calculation has two parts: your normal hourly rate, and a multiplier such as 1.5 or 2. The first part is the one people argue about, because it depends on how many hours a month your salary is meant to cover.

> **In short**
> - **Hourly rate = monthly salary ÷ working hours in the month.**
> - **Overtime pay = hourly rate × multiplier × overtime hours.**
> - On ₹30,000 a month and 176 working hours, the rate is **₹170.45**. Ten overtime hours at 1.5× pay **₹2,556.82**, for a total of **₹32,556.82**.
> - The divisor matters. The same salary and hours give very different pay if the month is counted as 160, 176, 208 or 240 hours.

## The formula, step by step

**Example: ₹30,000 a month, 10 hours of overtime at 1.5×**

1. **Work out the normal hourly rate.** ₹30,000 ÷ 176 hours = **₹170.45**.
2. **Apply the multiplier.** ₹170.45 × 1.5 = **₹255.68** per overtime hour.
3. **Multiply by the overtime hours.** ₹255.68 × 10 = **₹2,556.82**.
4. **Add to the salary.** ₹30,000 + ₹2,556.82 = **₹32,556.82** for the month.

*If you are paid by the hour, enter the hourly rate and set the monthly salary to 0. The tool then skips the first step.*

Try it: [Overtime Pay Calculator](https://toolcloak.pages.dev/tools/overtime-pay-calculator). Enter your monthly salary (or hourly rate), working hours, overtime hours and the multiplier.

## What the multiplier means

| Multiplier | Overtime hourly rate | Pay for 10 hours | Total with ₹30,000 salary |
| --- | --- | --- | --- |
| 1.25× | ₹213.07 | ₹2,130.68 | ₹32,130.68 |
| 1.5× | ₹255.68 | ₹2,556.82 | ₹32,556.82 |
| 2× | ₹340.91 | ₹3,409.09 | ₹33,409.09 |
| 2.5× | ₹426.14 | ₹4,261.36 | ₹34,261.36 |

*A multiplier of 1 would pay the normal rate. Many arrangements use 1.25, 1.5 or 2, and some use different multipliers for weekdays, weekends and holidays.*

**Pay for 10 overtime hours by multiplier (₹)**

|  | Overtime pay |
| --- | --- |
| 1.25× | ₹2,131 |
| 1.5× | ₹2,557 |
| 2× | ₹3,409 |
| 2.5× | ₹4,261 |

*Going from time-and-a-half (1.5×) to double time (2×) adds about 33% to the overtime pay for the same hours.*

> **Rules differ by country and job:** In the United States, many hourly workers who are not exempt get 1.5 times their regular rate for hours beyond 40 in a week. Under India's Factories Act, factory workers are entitled to twice the ordinary rate for overtime. Shops, offices and private employers follow state laws, contracts or company policy, and some salaried roles have no overtime at all. Check your own contract and local law.

## The hidden choice: how many hours is a month?

A salary of 30,000 a month does not tell you the hourly rate until you decide how many hours it pays for. The tool's default is 176, which is 22 working days of 8 hours. A company that counts 26 days (208 hours) or a standard 30-day month (240 hours) gets a lower hourly rate from the same salary.

| Hours counted in the month | Normal hourly rate | 10 overtime hours at 1.5× |
| --- | --- | --- |
| 160 hours | ₹187.50 | ₹2,812.50 |
| 176 hours | ₹170.45 | ₹2,556.82 |
| 208 hours | ₹144.23 | ₹2,163.46 |
| 240 hours | ₹125.00 | ₹1,875.00 |

*Same salary, same 10 hours. The pay ranges from about ₹1,875 to about ₹2,813 depending only on the divisor.*

> **Ask which divisor your employer uses:** Check your appointment letter or the wage rules that apply to you. If overtime is paid per month on a different basis from the one you assumed, your own calculation will not match the payslip.

## How hours add up

| Overtime hours | Overtime pay (1.5×) | Total with salary |
| --- | --- | --- |
| 5 | ₹1,278.41 | ₹31,278.41 |
| 10 | ₹2,556.82 | ₹32,556.82 |
| 20 | ₹5,113.64 | ₹35,113.64 |
| 40 | ₹10,227.27 | ₹40,227.27 |

*Pay grows in a straight line with hours, at about ₹256 per extra hour for this salary.*

**The example month in four numbers**

|  | Value | Note |
| --- | --- | --- |
| Normal hourly rate | ₹170.45 | ₹30,000 ÷ 176 |
| Overtime hourly rate | ₹255.68 | At 1.5× |
| Overtime pay | ₹2,556.82 | 10 hours |
| Total with salary | ₹32,556.82 | Before tax and deductions |

*Overtime is part of your income, so tax and provident-fund rules may apply to it. The tool shows pay before any deductions.*

## Is overtime worth it?

Extra pay is welcome, but rest has a cost too. Compare the overtime rate with what an hour of your own time is worth, and keep an eye on how many extra hours you are doing. If overtime becomes routine, a discussion about your normal hours or a revised salary may serve you better.

## Checking your payslip

1. **Write down the hours you worked** in overtime each day or week.
2. **Find your normal hourly rate** from your contract or the way your company counts hours.
3. **Use the right multiplier** for the day: weekday, weekend or holiday.
4. **Calculate the pay** with the calculator.
5. **Compare it with the payslip** and ask payroll to explain any difference.

## Frequently asked questions

### How do I calculate overtime pay?

Divide your monthly salary by the working hours in the month to get the hourly rate, multiply by the overtime multiplier, then multiply by the overtime hours. For 30,000 a month, 176 hours, 10 overtime hours at 1.5 times, the pay is about 2,557.

### What is time and a half?

It means paying 1.5 times the normal hourly rate for overtime hours. At a normal rate of 200 an hour, time and a half is 300 an hour.

### What is double time?

Double time is a multiplier of 2, so overtime hours are paid at twice the normal rate. It is often used for holidays, rest days or very long hours.

### How many working hours are in a month?

It depends on how your employer counts. 22 days of 8 hours gives 176 hours, 26 days gives 208 and a 30-day month of 8 hours a day gives 240. A bigger number gives a smaller hourly rate.

### Can I use the calculator if I am paid by the hour?

Yes. Set the monthly salary to 0 and enter your hourly rate. The tool then uses the hourly rate directly.

### Does the result include tax?

No. The [Overtime Pay Calculator](https://toolcloak.pages.dev/tools/overtime-pay-calculator) shows gross pay. Tax and other deductions depend on your income, your country and your employer's payroll.