Overtime (OT) Hourly Pay Calculation Under Nepal Labour Act 2074
Section 31 of the Nepal Labour Act 2074 establishes working hour standards across commercial and industrial workplaces. Standard working hours are capped at 8 hours per day and 48 hours per week. Hours worked beyond this threshold mandate compensation at 1.5 times the employees ordinary hourly wage.
- Standard full-time employment is 8 hours daily and 48 hours across a 6-day working week.
- Overtime compensation rate is strictly 1.5 times the normal hourly basic remuneration.
- Overtime cannot exceed 4 hours per day or 24 hours in any single working week.
- Normal hourly wage equals monthly basic remuneration divided by 208 working hours.
Step-by-Step Hourly Wage Computation
To compute overtime entitlements accurately, determine your base hourly rate before applying the statutory premium:
| Calculation Step | Formula | Example (NPR 26,000 Basic Salary) |
|---|---|---|
| Monthly Working Hours | 26 Days * 8 Hours | 208 Hours per Month |
| Base Hourly Wage | Monthly Basic / 208 | NPR 26,000 / 208 = NPR 125.00 |
| Overtime Hourly Rate (1.5x) | Base Hourly Wage * 1.5 | NPR 125.00 * 1.5 = NPR 187.50 |
| Total Pay for 20 Hours OT | OT Rate * Overtime Hours | NPR 187.50 * 20 = NPR 3,750.00 |
Public Holiday and Festival Overtime Rules
Employees rostered to work on gazetted public holidays or during Dashain and Tihar festival breaks receive substitute paid leave within 21 days or overtime compensation computed at statutory enhanced rates.
Final Thoughts
Clear overtime tracking protects worker health and payroll compliance. Use our Overtime Calculator to compute your exact hourly rates and monthly earnings.
Ready to calculate your exact numbers?
Apply the formulas and laws outlined in this guide directly using our precision calculators.
Open Calculate 1.5x Overtime Hourly Pay