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.

Financev1.0.0Last reviewed 15 Sept 2026

Overtime Pay Calculator Pakistan

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.

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How this 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

Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.