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Free template template · Word

Overtime Calculation Sheet

An overtime calculation sheet converts approved overtime hours into amounts for payroll. For each employee it lists approved OT hours, the wage base and the rate that applies under law or company policy, and the resulting amount, so HR and payroll can cross-check before salary is paid.

  • Editable Word (.docx)
  • Made for India
  • 18 fill-in fields highlighted
  • Free, no sign-up

Preview of the template

[Highlighted] = fill in
[Company Logo][Company Name]

OVERTIME CALCULATION SHEET

Company:
[Company Name]
Payroll Month:
[Month Year]
Department:
[Department]
Standard Hours per Month:
[No.]

Basis: Hourly rate = [Wage base as per applicable law/policy] ÷ [Standard hours per month]. OT amount = Approved OT hours × Hourly rate × [Applicable OT rate as per law/policy]. Overtime is paid as per applicable law and company policy.

Employee IDEmployee NameApproved OT HoursWage Base (₹)Hourly Rate (₹)Applicable OT RateOT Amount (₹)Approval Ref.
[Employee ID][Employee Name][Hours][Amount][Amount][As per law/policy][Amount][Reference Number]
[Employee ID][Employee Name][Hours][Amount][Amount][As per law/policy][Amount][Reference Number]
[Employee ID][Employee Name][Hours][Amount][Amount][As per law/policy][Amount][Reference Number]
[Employee ID][Employee Name][Hours][Amount][Amount][As per law/policy][Amount][Reference Number]
[Employee ID][Employee Name][Hours][Amount][Amount][As per law/policy][Amount][Reference Number]

Department Summary

Total OT HoursTotal OT Amount (₹)Previous Month (₹)Change
[Hours][Amount][Amount][+/-]

Checks before Payroll

  • All hours match approved overtime forms
  • Wage base matches salary master
  • Rate applied as per current law/policy
  • Calculation checked by second person
Prepared by
[Payroll Executive]
Date: [Date]
Checked by
[HR Name]
Approved by
[Finance Head]

What this template includes

  • Approved OT hours only – from the approval form
  • Wage base used – as defined by applicable law/policy
  • Hourly rate derivation – transparent formula placeholder
  • Applicable OT rate – entered as per law or policy, not assumed
  • Amount per employee – payroll figure
  • Department total – cost visibility
  • Checker sign-off – four-eyes control

When to use it

  • Monthly payroll processing for overtime-eligible staff
  • Cross-checking overtime calculated by payroll software
  • Responding to an employee query about OT pay
  • Budgeting overtime cost by department

How to customise this template

  1. 1Enter the wage components that form the OT base as per your applicable law/policy
  2. 2Set your hourly rate formula (e.g. monthly base divided by standard hours)
  3. 3Fill the applicable OT rate as per law or policy
  4. 4Link to your payroll month

HR tips

  • Never calculate OT on unapproved hours
  • Document the formula in the sheet so it is consistent each month
  • Have a second person check calculations
  • Keep the sheet with the payroll records for the month

This template is a starting point. Review it against applicable labour laws, state Shops & Establishments or Factories rules, your standing orders and the overtime wage rules applicable to your employees, and consult a legal adviser where needed.

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Frequently asked questions

How is overtime calculated?+

Approved overtime hours are multiplied by the hourly rate derived from the wage base and the overtime rate applicable under law or company policy. The sheet records each step so it can be checked.

Which salary components are included for overtime?+

This depends on the applicable law and your policy definition of wages. Confirm the components before calculating.

Is overtime taxable?+

Yes, overtime is part of salary income and is included in taxable income and TDS calculation.