Overtime and Half-Day Salary Calculation for Workers (with Examples)
Overtime calculation is simple once you know the hourly rate: divide the day's wage by the normal working hours, then pay overtime hours at twice that rate, which is the rule under the new labour codes. A half-day salary is normally half of the full day's wage. Below are the formulas and worked examples for daily-wage and monthly workers.
Working hours basics
- Under the new labour codes, normal working hours are capped at 8 hours a day and 48 hours a week
- Work beyond normal hours is overtime, needs the worker's consent, and is paid at at least twice the ordinary rate
- Record in-time and out-time every day, so overtime is never a guess
Overtime calculation for daily-wage workers
Hourly rate = Daily wage ÷ Normal hours
Overtime pay = Overtime hours × Hourly rate × 2
Example
Raju earns ₹640 for an 8-hour day and worked 3 hours of overtime.
- Hourly rate: ₹640 ÷ 8 = ₹80
- Overtime rate: ₹80 × 2 = ₹160 per hour
- Overtime pay: 3 × ₹160 = ₹480
Overtime calculation for monthly staff
Daily rate = Monthly salary ÷ Days in the month (or 26/30, as per your policy)
Then calculate the hourly and overtime rate as above.
Example
Sunita earns ₹15,600 a month, 26 working days, 8 hours a day, and did 6 hours of overtime.
- Daily rate: ₹15,600 ÷ 26 = ₹600
- Hourly rate: ₹600 ÷ 8 = ₹75
- Overtime pay: 6 × ₹75 × 2 = ₹900
Half-day salary calculation
Half-day salary = Daily wage ÷ 2
Decide what counts as a half-day, for example working less than 5 hours or arriving after 1 pm, and tell workers in advance. Some businesses also use fractional hajri like 1.5 or 2.5 days for contract work.
Example
Ramesh earns ₹600 a day. In October he worked 22 full days and 4 half-days.
- Full days: 22 × ₹600 = ₹13,200
- Half-days: 4 × ₹300 = ₹1,200
- Total: ₹14,400
Common mistakes
- Paying overtime at the normal rate instead of double
- Not recording out-time, so overtime is argued about
- Counting a double shift as overtime hours instead of 2 hajri
- Changing the half-day rule from worker to worker
Let the app do the maths
In HajariBook, mark P, half-day, double shift or overtime hours each day, and the app calculates the month's wages, overtime and kharchi deductions automatically. Prefer to check by hand? Try our daily wage calculator.
Frequently asked questions
What is the overtime rate in India?
Under the new labour codes, overtime is generally paid at twice the ordinary rate of wages.
How is half-day salary calculated?
Usually half of one day's wage. Define what counts as a half-day and apply it consistently.
Should I divide monthly salary by 26 or 30?
Both are used. Read our guide on salary slips and choose one method, then apply it to everyone.
Download HajariBook free and stop calculating overtime by hand.