Question 1

Is overtime taxable in India?

Accepted Answer

Yes, overtime is generally taxed as regular salary income.

Question 2

How is overtime pay calculated?

Accepted Answer

A common approach is hourly salary equivalent multiplied by overtime hours and the overtime rate.

Question 3

What rate should I use?

Accepted Answer

Use the policy stated by your employer, often 1x, 1.5x, or 2x.

Question 4

Does overtime affect tax slab?

Accepted Answer

It can, especially if the amount is meaningful relative to annual salary.

Question 5

Should overtime be compared with fixed salary hikes?

Accepted Answer

Yes. Repeated overtime income is less predictable than a higher fixed monthly salary.

Overtime Salary Calculator India 2025

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