Overtime from monthly ordinary pay
Opens on Rs. 40,000, 26 days, 8 hours a day, 10 overtime hours and double time.
Basic plus allowances that count as ordinary pay. The ordinary rate excludes overtime itself and bonuses. Check the law that applies.
Illustrative overtime
- Hourly rateRs. 192.31
- Overtime payRs. 3,846
- Monthly ordinary payRs. 40,000
- Ordinary pay + overtimeRs. 43,846
- 1Hourly rate = monthly pay ÷ (days × hours)
- 2Overtime pay = overtime hours × hourly rate × multiplier
- 3Round the hourly rate to 2 decimals and the rupee amounts to the nearest rupee
- 4Total = monthly ordinary pay + overtime pay
How overtime is calculated in Pakistan
Under the Factories Act 1934, section 47, overtime is paid at twice the ordinary rate of pay. It is triggered above 9 hours a day or 48 hours a week in a non-seasonal factory, and above 9 hours a day or 50 hours a week in a seasonal factory. Punjab and Khyber Pakhtunkhwa shops laws, and the Balochistan Code text of the 1969 Ordinance, also state double the ordinary rate. The Sindh Shops and Commercial Establishment Act 2015 wording is unclear in the published PDF, so confirm the Sindh rate with the labour department or an adviser. The full write-up is the overtime calculation rules guide.
Choosing the hourly divisor
The law does not fix one divisor for monthly-paid staff. Companies commonly use working days times daily hours, for example 26 × 8 = 208, or 30 × 8. Pick one rule in policy and apply it to everyone the same way. With the opening numbers, 40,000 ÷ 208 is Rs. 192.31 an hour, 10 hours at double that rate is Rs. 3,846, and the month totals Rs. 43,846.
Overtime in payroll
Overtime is part of taxable salary and should appear as its own line on the payslip. The line names are in the salary slip format. Approvals should come from attendance, not a figure typed in at the end of the month. See the attendance management system and shift scheduling software. When the same hours should land on the pay run, see payroll software in Pakistan.
Estimate only, not legal advice. Checked against the overtime guide dated 24 October 2026.
Overtime calculator questions
Under the Factories Act 1934, section 47, overtime is paid at twice the ordinary rate of pay. Punjab and Khyber Pakhtunkhwa shops laws, and the Balochistan Code text of the 1969 Ordinance, also state double the ordinary rate. The Sindh Shops and Commercial Establishment Act 2015 wording is unclear in the published PDF, so confirm the Sindh rate with the labour department or an adviser.
Under the Factories Act 1934, section 47, overtime is triggered above 9 hours a day or 48 hours a week in a non-seasonal factory, and above 9 hours a day or 50 hours a week in a seasonal factory.
Divide monthly ordinary pay by working days times ordinary hours per day. The law does not fix one divisor. Companies commonly use 26 × 8 (208) or 30 × 8. Pick one rule in policy and apply it to everyone.
Yes. Overtime is part of salary income and is taxed with the rest of salary.
No. It is an estimate only. It does not decide which statute covers the establishment or which divisor the contract uses.
Run this in live payroll, not a spreadsheet
StreamHCM applies the same FBR slabs, attendance rules, EOBI and expense-claim logic across every employee, then generates the payslip.