How this is calculated
The hourly rate formula
Your ordinary hourly rate is your gross monthly salary annualized, then divided by the standard working year: (gross × 12) ÷ (52 × 48). Standard overtime pays double that hourly rate; work on an officially declared festival holiday pays triple.
What "gross monthly salary" should include
The law defines the base as your full gross monthly salary. In practice, some employers narrow this to basic pay plus cost-of-living allowance only, excluding fixed allowances like rent, conveyance, or medical — which understates what you're legally owed. Worth checking your payslip against this if the numbers don't match.
Assumptions & limits
Assumes a standard 48-hour week under the Factories Act — seasonal factories (50hr week) and railway workers (1.25× rate) follow different rules not modeled here. Legal overtime caps: 150 hours/quarter, 624 hours/year federally, though Sindh has reduced its annual cap to 150 hours. Figures are for guidance only, not legal advice.