Overtime, and the argument about when the clock started
Work beyond normal hours, generally at twice the ordinary rate — where the disputes come from the grace period and the rounding, not the multiplier.
What it is
Work beyond normal hours, generally paid at twice the ordinary rate under Indian factory and shops legislation.
The four settings
Grace period, rounding rule, minimum block, and monthly cap.
The trap
OT computed from a supervisor's recollection. It is the first number an employee challenges.
Overtime is work beyond normal hours, generally paid at twice the ordinary rate under Indian factory and shops legislation. Companies set a grace period before OT starts, a rounding rule, a minimum block, and often a monthly cap consistent with statutory limits.
How it works in practice
On a CTC-derived hourly rate, four OT hours at double rate is a straightforward calculation — the disputes come from when the clock starts.
What to watch for
OT computed from a supervisor’s memory rather than a timestamp is the number employees challenge first.
How Klok handles it
Klok computes OT from the attendance register using the grade’s rules — grace, rounding, minimum and cap.
Overtime (OT) FAQs
Is double the ordinary rate always correct?
It is the general position under the Factories Act and most shops and establishments legislation, but the applicable rate and the daily and weekly ceilings depend on the enactment covering your establishment. Check the one that applies to you rather than the one most often quoted.
Can overtime be paid as a fixed monthly allowance?
A fixed allowance is not overtime and will not be treated as discharging the obligation. It also breaks the link to the register, which is what an inspection will ask to see.
Do managers get overtime?
Employees in positions of management or supervision are generally excluded, but the exclusion turns on what the person actually does, not on their designation. A "supervisor" who works to a roster and clocks in is unlikely to qualify.
Is overtime calculated on gross salary?
The base is defined by the applicable rules, and it is rarely gross. Using gross inflates every overtime payment you make, and it is very difficult to recover afterwards.
Do we owe overtime to employees who choose to stay late?
If the work was required or knowingly permitted, informal arrangement does not remove the obligation. "They stayed voluntarily" is not the defence it is assumed to be.
Should breaks be deducted before calculating overtime?
Yes. Time on the premises is not time worked, and paying overtime on an unadjusted in-to-out span is the most expensive attendance error we see.
Stop calculating this by hand
Klok computes it from your own attendance and salary data, every month, with the working shown.