Overtime pay calculator
Work out the hourly rate, the overtime rate and the total overtime pay for a month. The common method in Bangladesh factories is basic pay divided by 208 for the hourly rate, then twice that for each overtime hour. Check it against your payslip.
Last updated: 2026-10-03
The formula
Overtime pay
Hourly rate = (basic + dearness / ad hoc pay) ÷ 208 Overtime rate = 2 × hourly rate Overtime pay = overtime rate × hours
- The Bangladesh Labour Act 2006 sets the overtime rate at twice the ordinary rate of basic wage plus dearness allowance and ad hoc or interim pay, if any.
- 208 is 26 working days × 8 hours, the divisor commonly used in factory payroll. Your employer’s contract may state another divisor; the field lets you change it.
- House rent, medical and conveyance are usually not part of the overtime base.
Basic ৳8,000 and 40 overtime hours
Monthly basic ৳8,000, no extra eligible pay, 40 hours of overtime.
- Hourly rate = 8,000 ÷ 208 = ৳38.46
- Overtime rate = 2 × 38.46 = ৳76.92
- Overtime pay = 76.92 × 40 = ৳3,077 (rounded)
About ৳3,077 for the month on top of the regular pay.
Using it with your payslip
- Find your basic pay — It is a separate line on the payslip or appointment letter, not the gross total.
- Add dearness or ad hoc pay only if you have it — If your payslip shows such a line, add it in the second box.
- Enter the overtime hours for the month — Use the hours your attendance record shows.
- Compare — If the payslip shows a different overtime figure, ask payroll which divisor and base they used.
- Dividing gross salary instead of basic pay.
- Using 8 hours × 30 days (240) when the workplace uses 208, or the other way round.
- Forgetting the 2× multiplier.
Source: Bangladesh Labour Act 2006
FAQ
How is overtime calculated in Bangladesh?
Divide monthly basic pay (plus dearness or ad hoc pay, if any) by 208 to get the hourly rate, then multiply by 2 for the overtime rate, then by the overtime hours.
Why 208?
26 working days × 8 hours = 208. It is the divisor widely used in factory payroll. Some employers use another figure, so check your contract.
Is overtime pay taxable?
It is part of income. Whether tax is due depends on your total yearly income. See the income-tax calculator.
Does this work for office jobs?
Only if your contract pays overtime on the same basis. Many office jobs do not pay overtime at all.