Overtime pay calculator
Work out your ordinary hourly rate, overtime rate and total overtime pay from your monthly salary or hourly wage, using the Labour Act 2074's 1.5x overtime multiplier as the default, editable if your contract sets a different figure.
An indicative tool, computed entirely in your browser. Always confirm the exact rate and any caps with your employer's payroll or HR department.
Pay & hours
Use the basic salary only, this is what overtime is calculated on.
Default 208 hours (8 hours × 26 working days). Adjust to match your employer's actual working days.
Total extra hours worked beyond standard hours, for the period you are calculating pay for.
Labour Act 2074, section 31 sets overtime at 1.5 times the ordinary hourly rate. Editable in case your contract or sector sets a different figure, confirm against your employment contract and the Act.
Note: overtime under the Labour Act 2074 is capped at 4 hours a day and requires the worker's consent. Total working hours, including overtime, may not exceed 12 hours in a day.
Total overtime pay
Rs 2,524
10 hrs × Rs 252/hr
Overtime rate
Rs 252/hr
Ordinary hourly rate
Rs 168/hr
Overtime multiplier
1.5×
Overtime hours
10 hrs
| Ordinary hourly rate | Rs 35,000 ÷ 208 hrs = Rs 168 |
| Overtime rate | Rs 168 × 1.5 = Rs 252 |
| Total overtime pay | 10 hrs × Rs 252 = Rs 2,524 |
An indicative estimate. Overtime multiplier defaults to 1.5 times the ordinary hourly rate under the Labour Act 2074, section 31, adjust it if your contract, sector agreement or a later amendment sets a different figure. Always confirm the exact rate and any caps with your employer's payroll or HR department.
Your hourly rate, then the statutory multiplier
Three steps turn a salary and overtime hours into a pay figure.
Find the ordinary hourly rate
Monthly basic salary divided by standard working hours a month (208 by default, 8 hours × 26 days), or enter an hourly wage directly.
Apply the overtime multiplier
Overtime rate = hourly rate × multiplier. The Labour Act 2074 sets this at 1.5x, pre-filled but editable to match your contract.
Multiply by overtime hours
Total overtime pay = overtime hours worked × overtime rate, flagged if it exceeds an indicative monthly ceiling from the Act's daily cap.
Overtime pay is gross income, taxed the same way as your regular salary. Once you know your overtime pay for the month, our salary take-home calculator works out net pay after SSF/EPF and income tax for the full month, including that extra income.
Overtime pay, answered
What is the overtime pay rate in Nepal?+
Under section 31 of the Labour Act 2074 (2017), a worker made to work beyond 8 hours in a day or 48 hours in a week must be paid overtime at one and a half times (1.5x) their ordinary hourly rate of wages, computed on basic salary. That 1.5x figure is the default in this calculator's overtime multiplier field, source: Labour Act 2074, Nepal Law Commission.
Is there a maximum limit on overtime hours?+
Yes. The Labour Act 2074 caps overtime at 4 hours a day, and total working hours including overtime may not exceed 12 hours in a day. Weekly overtime limits are also cited around 20 to 24 hours a week depending on the source, so confirm the exact weekly figure that applies to your sector with your employer or the Act itself. This calculator flags an indicative monthly ceiling derived from the daily cap, it is a guide, not a quoted statutory monthly figure.
Does overtime pay apply to all employees?+
Overtime provisions generally apply to workers and employees covered by the Labour Act 2074, working overtime requires the worker's consent, and workers below 18 years of age cannot be assigned overtime. Certain categories of staff, such as those in genuinely managerial or supervisory roles, may be treated differently under an employer's service rules. Check your employment contract and service rules for how overtime is defined for your specific role.
Is overtime pay taxed the same as regular salary?+
Overtime pay is generally treated as employment income and taxed the same way as regular salary, added to your gross remuneration and taxed at your applicable slab rate under the Income Tax Act. This calculator only computes the gross overtime pay before tax, use our salary take-home calculator to see how additional overtime income affects your net pay for the month.
Sources & data note
Overtime pay is estimated from the Labour Act 2074's overtime provisions: 1.5x the ordinary hourly rate, computed on basic salary, pre-filled as the default multiplier but editable to match your contract or sector agreement. The Act caps overtime at 4 hours a day and 12 hours total working time a day; this calculator's monthly-ceiling warning is a derived guide, not a quoted statutory monthly figure. Not legal or tax advice, confirm exact figures with your employer's payroll or HR department.