Overtime pay in India 2026: premiums, limits and tax

Overtime, night work and work on Sundays and public holidays in India can earn a premium on top of your normal hourly pay, and the extra pay is taxed at your highest rate. The calculator above shows what you really keep. Below you will find the rules in brief, an example and answers to common questions.

The rules in brief

• Overtime: Workers are paid at least twice their normal rate of wages for overtime (Code on Wages 2019 and Occupational Safety, Health and Working Conditions Code 2020, in force since November 2025). Wages here are basic pay, at least half of the total pay. Normal hours are at most 8 a day and 48 a week; each state sets the overtime limit. Managers and supervisors follow their contract.

Example: 8 hours of overtime a month

With a normal hourly rate of ₹240.38 (annual salary ÷ 52 ÷ weekly hours), 8 hours of overtime a month at ×2 of wages (50.0% of pay) add ₹1,923.08 gross, of which you keep ₹1,923.08 net a month. You keep 100.0% of each taxed extra unit. Over a year that comes to ₹23,077 (net · ₹23,077 gross).

Frequently asked questions

Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.