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Overtime Calculator — Factory Worker OT Pay Bangladesh
Calculate overtime pay for garment factory workers under the Bangladesh Labour Act 2006. Supports monthly, daily and hourly wage structures at 2× rate (legal requirement) or 1.5×. Includes a legal limit warning when overtime exceeds the statutory maximum. No account needed — numbers update as you type.
Bangladesh Labour Act 2006, Section 108: overtime pay must be at double the basic hourly wage rate. The OT base is basic salary only — house rent, medical, transport and food allowances are excluded. Maximum legally permitted overtime is 2 hours per day. This calculator is for reference; confirm payroll figures with a qualified HR professional.
Step By Step
How to Use This Calculator
8 steps
- Select currency — BDT is default for Bangladesh; USD is available for comparison.
- Choose wage type: monthly salary (most common in RMG), daily wage, or hourly rate.
- Enter the basic salary amount — for monthly, enter basic component only (not total package).
- Enter working days per month (Bangladesh RMG standard = 26 days).
- Enter regular working hours per day (standard = 8 hours).
- Enter the number of overtime hours to calculate pay for.
- Select OT rate: 2× for Bangladesh Labour Act compliance; 1.5× for other jurisdictions.
- Results show hourly rate, OT pay per hour, total OT pay, regular pay and gross pay.
Worked Example
Worked example — Grade 5 operator, 6 hours overtime in a month
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1Monthly basic salary: BDT 8,470 (Grade 5, Dec 2023 minimum wage gazette)
- 2Working: 26 days × 480 min = 12,480 min/month = 208 hours/month
- 3Basic hourly rate: BDT 8,470 ÷ 208 = BDT 40.72/hr
- 4OT rate at 2×: BDT 81.44/hr · OT hours: 6
Final Result
Total OT pay: BDT 488.64 · Regular gross package (with all allowances): BDT 13,985 + BDT 488.64 OT = BDT 14,474.
Methodology
OT Pay Formula — Bangladesh Labour Act 2006, Section 108
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
Basic Hourly Rate = Monthly Basic Salary ÷ (Working Days × Hours per Day). OT Hourly Rate = Basic Hourly Rate × OT Multiplier (2 for Bangladesh). Total OT Pay = OT Hourly Rate × OT Hours. Standard monthly hours in Bangladesh RMG: 26 days × 8 hours = 208 hours. Legal limit: Section 100 of the Bangladesh Labour Act 2006 limits overtime to 2 hours per day and 12 hours per week. Annual overtime cannot exceed 576 hours (Section 100(3)). Source: Bangladesh Labour Act 2006 (Act No. 42), Sections 100, 108; Bangladesh Gazette Extraordinary, 13 December 2023 (RMG wage gazette).
Practical Guidance
Overtime compliance — what auditors and buyers check
- 1The 2-hour daily OT limit is one of the most commonly cited findings in SEDEX/BSCI and Accord-follow-on social audits — maintain daily OT registers per worker and review monthly
- 2Forced overtime (workers required to stay against their will) is a critical non-conformance that can lead to factory suspension from buyer programmes — document OT consent forms
- 3Calculate OT cost before accepting a rush order — at 2× rate, 30 hours of OT per worker per month adds roughly 20% to per-worker labour cost for that month
- 4Bangladesh Labour Act Section 100(3) sets a maximum of 576 hours of overtime per worker per year — this works out to an average of 48 hours/month or 11 hours/week; track cumulative annual OT per worker
- 5Pay OT wages in the same monthly payroll — separate or delayed OT payments are a compliance red flag in buyer audits
- 6Lean manufacturing and better line balancing are more sustainable than routine OT — a well-balanced line of 25 operators at 70% efficiency produces the same output as a 30-operator line at 65% efficiency without extra cost
Frequently Asked Questions
What is the overtime rate under Bangladesh Labour Law?+
Section 108 of the Bangladesh Labour Act 2006 (Act No. 42 of 2006) requires that overtime work be compensated at double the worker's basic hourly wage rate. The calculation base is the basic salary component only — it excludes house rent allowance, medical allowance, transport allowance and food allowance. A Grade 5 operator whose basic salary is BDT 8,470 and total package is BDT 13,985 gets OT calculated on BDT 8,470 only. The 2× rate applies to all workers including permanent, temporary and seasonal employees.
How many hours of overtime are allowed per day in Bangladesh?+
Section 100 of the Bangladesh Labour Act 2006 limits overtime to a maximum of 2 hours per day. Total working hours including overtime cannot exceed 10 hours per day or 60 hours per week. Annual overtime cannot exceed 576 hours per worker per year (Section 100, subsection 3). Workers cannot be compelled to work overtime — their consent is required under the Act. Factories that routinely exceed the 2-hour daily limit face findings in social compliance audits (SEDEX, BSCI, WRAP) which can affect buyer relationships and orders.
Is overtime compulsory for garment workers in Bangladesh?+
No — the Bangladesh Labour Act 2006 does not permit compulsory overtime. Workers must consent to overtime work. However, in practice, production pressure during peak seasons (pre-Eid, pre-Christmas) often creates implicit pressure to work overtime. Major buyers (H&M, Inditex, PVH, Walmart) include 'no forced overtime' as a binding requirement in their Codes of Conduct, and third-party auditors (SGS, Bureau Veritas, Intertek) check for evidence of compulsory OT during factory assessments. Findings can trigger Corrective Action Plans (CAPs) and, in severe cases, factory suspension.
How do I calculate minute wage from monthly basic salary?+
Minute wage (BDT) = Monthly basic salary ÷ (Working days per month × Working minutes per day). Bangladesh RMG standard: 26 days × 480 minutes = 12,480 minutes. For a Grade 5 worker at BDT 8,470 basic: minute wage = 8,470 ÷ 12,480 = BDT 0.6787/minute. Hourly wage = 0.6787 × 60 = BDT 40.72/hour. OT hourly rate (2×) = BDT 81.44/hour. This minute wage is also used in CM (Cost of Making) calculations per BGMEA IE costing conventions.
Should OT cost be factored into garment CM?+
Yes — if your factory consistently uses overtime to meet delivery commitments, OT cost must be reflected in CM. A factory running 30 hours of OT per worker per month at 2× rate on basic salary is paying an effective premium of approximately 15–20% more per worker-hour on those overtime hours. If this is not built into CM, orders priced without OT will be loss-making when OT is used to deliver them. The standard approach is to include a realistic OT assumption (e.g. 5–10% of total operator minutes) in the overhead calculation or as a separate line in the CM build-up.