During month-end closing, the accounts team works late for a week. When the payslips arrive, two people say their overtime is missing and a third was paid for hours nobody approved. Overtime is where attendance records, approvals and payroll most often disagree, and it is also where employees feel most strongly about fairness. Accurate overtime starts with a clear rule and a reliable record of actual hours.
Know the rules that apply to you
India's four labour codes came into force on 21 November 2025. Under the Occupational Safety, Health and Working Conditions Code, overtime for covered workers is paid at twice the ordinary rate of wages, and overtime requires the worker's consent. Daily and weekly hour limits and quarterly overtime caps depend on the central and state rules that apply to your establishment, and several states continue to notify their own rules.
Coverage also varies by type of establishment and employee. Check with your compliance advisor which provisions apply to which staff, and write the result into your overtime policy.
Write a simple overtime policy
Pre-approval for planned overtime, with a quick post-approval route for genuine emergencies, works well for most teams.
- Who is eligible for overtime and who is not.
- What counts as overtime: beyond the daily shift, the weekly limit, or both.
- Who must approve overtime, and whether approval is needed in advance.
- How overtime is paid or compensated, and the rate.
- The cutoff date for overtime claims each month.
Record actual hours, not estimates
Overtime claims written up at month end are hard to verify and easy to dispute. A record of start and end times captured during the day, visible to the employee, is far stronger. It also protects employees: an employer who can see consistent late evenings is better placed to recognise them or to fix an unsustainable workload.
Calculate overtime the same way every month
Using the per-hour wage from your salary policy, overtime pay is the overtime hours multiplied by the hourly rate and by the applicable multiplier. For example, if the ordinary hourly rate is ₹150 and an employee works 6 approved overtime hours at twice the rate, overtime pay is 6 × ₹150 × 2 = ₹1,800. Confirm which wage components form the ordinary rate under your policy and the applicable rules.
How Pedinno tracks overtime from hours to payslip
Pedinno Time Tracker records each employee's tracked, active, idle and break time with first and last recorded times every day, and weekly and monthly reports with CSV export. Pedinno Payroll uses attendance, leave and overtime as payroll inputs alongside configured salary structures, so approved overtime can flow into the monthly run instead of a separate spreadsheet. Review the overtime figures before locking payroll and publishing payslips.
Watch the pattern, not just the payment
Review overtime by team each month. Regular overtime in the same team usually signals understaffing or a broken process, not dedication. Use the record to plan hiring or redistribute work before overtime becomes the normal working week.
Frequently asked questions
What is the overtime rate in India?
Under the OSH Code, in force since 21 November 2025, overtime for covered workers is paid at twice the ordinary rate of wages. Check the central and state rules that apply to your establishment.
Do employees have to agree to overtime?
The OSH Code requires the worker's consent for overtime. Record consent and approval in your overtime process.
Can Pedinno send overtime to payroll?
Pedinno Payroll uses attendance, leave and overtime as payroll inputs. Configure your overtime rules during setup and review figures before locking the run.
See Time Tracker in action
Transparent time tracking for Windows, macOS and Android — timers, activity levels, timelines, optional screenshots and daily, weekly and monthly reports.
Bring your overtime policy and one month of anonymised overtime claims, and ask for a walkthrough from tracked hours to payslip.
Explore Employee Time Tracker