# Overtime Pay Calculator Pakistan

Source: Searchable (https://searchable.pk/tools/finance/overtime-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

Turn a monthly salary into an hourly rate and work out overtime at double pay for the extra hours in a week or month, as the Factories Act and the Shops and Establishments Ordinance require.

Version 1.0.0. Inputs: Monthly wage, Overtime hours, Over, Ordinary daily hours.

## Worked example (default inputs)

- Monthly wage: 50000 PKR
- Overtime hours: 20
- Over: month
- Ordinary daily hours: 8

**Overtime pay for 20 hours (month): Rs 9,615**

Rs 50,000 ÷ 26 days ÷ 8 hours is Rs 240 an hour. Overtime is paid at 2×, Rs 481 an hour, so 20 hours earn Rs 9,615.

- Daily wage (÷ 26): Rs 1,923
- Hourly rate: Rs 240
- Overtime rate (2×): Rs 481
- Overtime pay: Rs 9,615
- Pay including ordinary wage (month): Rs 59,615

## How it is calculated

Section 47 of the **Factories Act 1934** and the provincial **Shops and Establishments Ordinances** entitle a worker who works beyond the ordinary hours (48 a week, 8 or 9 a day) to overtime at **twice the ordinary rate of pay**, including dearness allowance.

The hourly rate is derived the way labour courts and departments do it:
- Daily wage = monthly wage ÷ **26** (a month of working days).
- Hourly wage = daily wage ÷ ordinary daily hours (8 or 9).
- Overtime = hourly wage × **2** × overtime hours.

Limits: total hours including overtime are capped (commonly 60 a week, 12 a day) unless the factory holds an exemption; these limits, and stricter ones for women and young workers, are enforced by the provincial labour department.

## Frequently asked questions

**Is overtime always double?**

For workers covered by the Factories Act and the Shops and Establishments Ordinances, yes. Managerial and supervisory staff on a monthly salary above the workman definition are generally outside these rules, and their contracts govern.

**Why divide by 26 and not 30?**

Because 26 is the number of working days in a month with weekly rest days; dividing by 30 understates the daily rate and is a common source of underpayment claims.

**Does overtime include allowances?**

Basic pay and dearness allowance are doubled. Bonus, conveyance and house rent are not part of the ordinary rate.

**What can I do if overtime is not paid?**

Write to the employer first, then file with the labour inspector or labour court in your district. Claims can go back to the period the law allows; keep attendance records or gate passes.

## Sources

- Factories Act 1934, ss.34, 36 and 47; Shops and Establishments Ordinance 1969 (Provincial labour departments)

How to cite: "Overtime Pay Calculator Pakistan", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/finance/overtime-calculator