How Overtime is Calculated
Overtime refers to the additional hours an employee works beyond their standard contracted working hours. Under the Factories Act, 1948 and various state Shops and Establishments Acts in India, employees eligible for overtime must be compensated at a higher rate than their standard wage.
The standard statutory requirement for overtime in India is twice the ordinary rate of wages (2x multiplier).
Eligibility for Overtime
Not all employees are legally entitled to overtime pay. Generally, blue-collar workers and those covered under the Factories Act are eligible. White-collar workers, managers, and administrative staff are often exempt and subject to the specific terms of their employment contracts.