Salary to Hourly Calculator
Salary to Hourly / Per-Day / LOP Calculator India – 26-Day & 30-Day Methods (2026)
Salary to Hourly, Per-Day & LOP Calculator
Built on Indian payroll conventions — the 26-day month and the 48-hour week — not the American 40-hour one.
India · 2,496 paid hours a yearYour salary and your week
The same salary, four different day-count bases
| Basis | Days | Per day | Per hour | vs 26-day |
|---|
What a US-built calculator would tell you
| Convention | Hours per week | Hours per year | Hourly rate |
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Days lost and the month in question
What the same absence costs on each basis
| Basis | Days | Per day | Deduction | vs your basis |
|---|
Joining or leaving mid-month
The part month on each basis
| Basis | Divisor | Days paid | Salary payable |
|---|
Where does the 26-day month actually come from?
It is worth being precise about this, because a lot of payroll advice states it as though it were a general rule of law. It is not, but it is not arbitrary either.
Where 26 is genuinely statutory:
- Gratuity. The Payment of Gratuity Act, 1972 computes gratuity as fifteen days’ wages for each year of service, and it arrives at a day’s wage by dividing the monthly wage by 26. That is the familiar 15/26 formula, and the 26 is in the statute itself.
- Minimum wages. Minimum wage rates are notified on a 26-day basis, which is why the convention is near-universal in manufacturing and in any labour-compliance context.
Where it is not: for a monthly-salaried employee, no Indian law fixes the divisor. The Code on Wages requires that wages be paid in full and on time, but it does not say what a day is worth. That leaves the choice to your employer’s written policy, and 30, the calendar month and actual working days are all in common use alongside 26.
Why 26 is the coherent choice for an hourly rate. Twenty-six days of eight hours across twelve months is 2,496 hours. A 48-hour week across fifty-two weeks is also 2,496 hours. The two conventions agree exactly, which is why the 26-day basis sits so naturally with the statutory 48-hour week.
What to do: check your offer letter and your company’s attendance or leave policy. Whatever it says is what governs you. If it says nothing, ask — and ask whether the same basis is used when they pay you arrears as when they deduct.
How each figure is worked out
Hourly rate. Two routes that should agree, and do:
Hourly = annual salary ÷ (hours per week × 52)
Hourly = (monthly salary ÷ divisor) ÷ hours per day
With six days of eight hours and a 26-day divisor both give the same answer, because 26 × 8 × 12 and 48 × 52 are both 2,496. Change your days or hours per week and the two routes separate; we show the weekly route as the headline because it follows the hours you actually work.
Per-day rate is simply the monthly salary divided by whichever basis you choose. The comparison table shows all four so you can see the spread before you argue with anyone about it.
LOP is the per-day rate multiplied by the days lost:
LOP deduction = (monthly salary ÷ divisor) × LOP days
Where an employer treats a weekly off sandwiched between two unpaid days as unpaid too, add those days in the field provided — the practice varies and neither approach is universal.
The 50% check. Section 18(3) of the Code on Wages caps total deductions in any one wage period at half of wages for that period. We flag it when your LOP plus your other deductions crosses that line. Note that the cap is per wage period, so an employer cannot spread a large recovery in a way that takes more than half of any single month.
Part month. Days payable run from your joining date to the end of the month, or from the start of the month to your last working day. We count calendar days by default because that is the most common practice, then divide by your chosen basis — and cap the result at a full month’s salary, which is where the 26-day divisor can otherwise overpay.
What this does not do. It works on gross salary. It does not compute PF, ESI, professional tax or income tax, and it does not model overtime — for which the statutory rate is twice ordinary wages.
Working hours and overtime under the labour codes
The four labour codes came into force on 21 November 2025. On hours, the position reported consistently is:
- Eight hours a day and 48 hours a week are the normal limits, with the daily figure tied to Section 25 of the Occupational Safety, Health and Working Conditions Code and the weekly figure coming from the rules made under it.
- Overtime is paid at twice ordinary wages, and it requires the worker’s consent rather than being something an employer can simply impose.
- A compressed week is possible. Employers may run a four-day week by lengthening the working day, provided the 48-hour weekly total is not breached. The daily ceiling reported for this is twelve hours, though that comes from a single commentary and we have not been able to confirm it against the notified rules.
- The quarterly overtime cap is contested. Most 2026 sources give 144 hours per quarter under the central rules; at least one gives 125 and describes it as draft. State rules vary in any case, so check the ones that apply to you.
None of this changes an hourly rate derived from a salary, but it does set the ceiling on how many hours an employer can expect for it — and it is the reason 48 rather than 40 is the right divisor for an Indian week.
Frequently asked questions
Which day-count basis should I use?
Whichever your employer’s written policy says. If you are checking a payslip, work backwards — divide your monthly salary by the per-day figure they used and see which of 26, 30 or the month’s calendar days it matches. That tells you their basis more reliably than asking.
Why is my hourly rate lower than an online calculator told me?
Almost certainly because the calculator assumed a 40-hour American week. India’s standard is 48 hours, which is 2,496 paid hours a year against 2,080 — a fifth more hours for the same salary, so a fifth less per hour. The comparison table on the first tab shows both.
Can my employer deduct my whole salary for absence?
No. Section 18(3) of the Code on Wages caps total deductions in any wage period at 50% of wages for that period. If a deduction takes more than half your month, raise it. The cap applies per wage period, so a large recovery has to be spread rather than taken all at once.
Should a Sunday between two absent days be deducted?
Practice genuinely varies and neither approach is clearly right. Many employers treat a weekly off sandwiched between two unpaid days as unpaid as well; others deduct only the days you were actually due to work. Your attendance policy should say, and if it does not, that is worth fixing.
Does the per-day rate use gross salary or basic?
This tool uses whatever figure you enter, so it is your choice. For LOP most employers apply it to gross, since the whole month’s pay is reduced proportionately. Statutory calculations are different — gratuity, for instance, works on basic plus DA only.
I joined on the 10th. Why is my first salary less than two-thirds?
Because the days paid and the divisor may be counted differently. Nineteen calendar days out of a 28-day February is 68%, but nineteen days divided by a 26-day basis is 73%, and if they counted only working days in that stretch it could be lower again. The third tab shows all of them side by side.
How do I convert the other way, from an hourly rate to a salary?
Multiply by your hours per week and then by 52 for the annual figure, or divide that by twelve for a monthly one. If you are a freelancer pricing work, the SalaryBox Freelance Rate Calculator handles the extras an employee does not pay for — unpaid leave, equipment, and the gaps between projects.
The 26-day divisor is statutory for gratuity, where the Payment of Gratuity Act, 1972 computes a day’s wage as the monthly wage divided by 26, and minimum wages are notified on the same basis. For monthly-salaried employees no Indian law fixes a divisor, so the employer’s written policy governs and 26, 30, calendar days and actual working days are all in use. Normal working hours under the Occupational Safety, Health and Working Conditions Code are 8 a day and 48 a week, giving 2,496 paid hours a year against the US convention of 2,080; overtime is payable at twice ordinary wages. Total deductions in any wage period are capped at 50% of wages by Section 18(3) of the Code on Wages, 2019. The quarterly overtime ceiling is reported variously as 144 or 125 hours and state rules differ. This is an estimate for planning, not legal or payroll advice — your offer letter and your employer’s attendance policy are what actually govern your pay. Last verified: October 2026.
What is your hourly rate? What is one day of your salary worth? And how much gets deducted when you take unpaid leave? The answer depends entirely on which divisor you use — and in India, there are at least three different methods your company might follow. This free calculator converts your monthly salary into an hourly rate, a per-day rate, and an LOP (Loss of Pay) deduction amount, using all three Indian payroll conventions side by side so you can see exactly how much the answer changes between them.
Unlike global tools like Everhour and Harvest that use the US convention of 2,080 annual hours (40 hours per week times 52 weeks), this calculator is built for Indian payroll — where the standard workweek is 48 hours across 6 days, overtime is governed by the Factories Act, and the per-day divisor varies from 26 to 30 depending on your employer’s policy.
Why the Divisor Matters More Than You Think
The single most important number in converting your monthly salary to a daily or hourly rate is the divisor — the number you divide by. In India, companies use different divisors, and the difference is not trivial.
Take a monthly salary of Rs 60,000. Here is what one day is worth under each method:
26-day method (Mon-Sat, excluding Sundays): Rs 60,000 divided by 26 = Rs 2,308 per day.
30-day method (fixed calendar): Rs 60,000 divided by 30 = Rs 2,000 per day.
Actual calendar days (January, 31 days): Rs 60,000 divided by 31 = Rs 1,935 per day.
Actual working days (22 days in a typical month): Rs 60,000 divided by 22 = Rs 2,727 per day.
The gap between the lowest (Rs 1,935) and the highest (Rs 2,727) is Rs 792 per day — a 41% difference. If you have 3 LOP days, that is the difference between an Rs 5,805 deduction and an Rs 8,181 deduction. The divisor your company uses directly determines your take-home pay every time you take unpaid leave, join mid-month, or leave mid-month.
Our calculator shows all three methods side by side so you know your rate under every convention — and can verify which one your employer is using.
The Three Divisor Methods Explained
Method 1 – The 26-Day Divisor (Mon-Sat Standard)
Under this method, one month is treated as having 26 working days — calculated as 30 calendar days minus 4 Sundays. Saturday is treated as a working day. This is the most widely used convention in Indian payroll, especially in manufacturing, factories, government establishments, and traditional private sector companies that follow a 6-day workweek.
Per-day salary = Monthly salary divided by 26.
Hourly rate = Monthly salary divided by 26 divided by 8 = Monthly salary divided by 208.
This 26-day, 8-hour framework (208 hours per month) is the standard used for overtime calculation under the Factories Act, 1948 (Section 59) and the new labour codes. It is also the basis for gratuity computation under the Payment of Gratuity Act, 1972, where 15 days of wages means 15 out of 26 working days (not 15 out of 30).
However, it is important to note that no single statute universally mandates the 26-day divisor for all salary calculations. It is a payroll convention — widely followed and accepted — but your specific offer letter or company policy may specify a different method. Always check your employment terms.
Method 2 – The 30-Day Fixed Divisor
Under this method, every month is treated as having exactly 30 days, regardless of whether the month actually has 28, 30, or 31 days. This is the simplest method and is commonly used by IT companies, service sector firms, and many private employers.
Per-day salary = Monthly salary divided by 30.
Hourly rate = Monthly salary divided by 30 divided by 8 = Monthly salary divided by 240.
The advantage of this method is consistency — an employee’s per-day rate is the same every month, regardless of how many calendar days that month has. There is no fluctuation between February (28 days) and March (31 days). Many HRMS and payroll systems default to this divisor.
Method 3 – Actual Calendar Days of the Month
Under this method, the divisor is the actual number of days in the specific month — 28 for February, 30 for April, 31 for January, and so on.
Per-day salary = Monthly salary divided by actual days in the month.
Hourly rate = Monthly salary divided by actual days divided by 8.
This method produces different per-day rates each month. For a Rs 60,000 salary: Rs 2,143 per day in February (28 days), Rs 2,000 per day in April (30 days), Rs 1,935 per day in January (31 days). Some companies use this method, especially when they want payroll to reflect exact calendar proportions. The payroll software must recalculate the rate each month.
Method 4 – Actual Working Days of the Month
Some companies use the number of actual working days in a specific month (excluding weekends and public holidays). This can range from 20 to 23 days depending on the month, the day of the week the month starts on, and the number of public holidays.
Per-day salary = Monthly salary divided by actual working days that month.
This method produces the highest per-day rate (because the divisor is smallest) and is occasionally used for mid-month joiners or LOP calculations. However, it is less common as the primary payroll divisor.
Our calculator supports all four methods. Enter your salary once and see the per-day rate, hourly rate, and LOP deduction under each one simultaneously.
For a deeper dive into how working days are counted for salary purposes, read our blog on how to calculate working days for salary in India — the 26-day rule, LOP, and pro-rata guide.
How to Use the Salary to Hourly / Per-Day / LOP Calculator
Step 1 – Enter Your Monthly Salary
Input your monthly gross salary. This is the amount before PF, ESI, TDS, and other deductions — it is typically the gross salary line on your salary slip. If you need to calculate your gross from CTC, use our salary calculator first.
Step 2 – Enter Your Working Hours Per Day
The default is 8 hours per day, which is the standard for most Indian companies. If you work 9-hour shifts (common in manufacturing under the Factories Act, which allows up to 9 hours per day), adjust accordingly. The calculator uses this to compute your hourly rate.
Step 3 – Enter LOP Days (If Applicable)
If you want to calculate Loss of Pay deduction, enter the number of LOP days. The calculator applies all three divisor methods and shows the LOP deduction amount under each — so you can see the exact impact on your salary.
Step 4 – View All Results Side by Side
The calculator outputs your per-day rate under 26-day, 30-day, and actual calendar day methods. Your hourly rate under each method. Your LOP deduction under each method. And net salary after LOP deduction. The side-by-side view is the point — it shows you exactly how much the answer changes between methods.
What Is LOP (Loss of Pay) and How Is It Calculated?
LOP or Loss of Pay is a salary deduction that applies when an employee takes leave without having sufficient paid leave balance. It is not a penalty — it simply means the employee is not paid for the days they did not work and had no leave to cover.
The LOP Formula
LOP Deduction = (Monthly Salary / Divisor) x Number of LOP Days
The divisor is the key variable. Your company’s HR policy or employment contract specifies which divisor applies. If it does not, ask your HR department — do not assume.
LOP Calculation Example
Employee monthly gross salary: Rs 48,000. LOP days: 2.
Using 26-day divisor: LOP = (48,000 / 26) x 2 = Rs 3,692. Net salary = Rs 44,308.
Using 30-day divisor: LOP = (48,000 / 30) x 2 = Rs 3,200. Net salary = Rs 44,800.
Using actual days (31-day month): LOP = (48,000 / 31) x 2 = Rs 3,097. Net salary = Rs 44,903.
The difference between the 26-day method and the 31-day method is Rs 595 for just 2 days of LOP. Over a year with multiple LOP instances, this compounds into a meaningful difference in take-home pay.
When Does LOP Apply?
Leave balance is exhausted and the employee takes additional leave. The employee takes leave without prior approval. The employee is absent without notice. The employee joins or leaves the company mid-month (salary is computed pro-rata for the days worked). Half-day LOP is also possible — typically at half of one day’s rate.
LOP on the Salary Slip
LOP deductions appear under the “Deductions” section of your salary slip, typically labelled as “LOP Days” or “Unpaid Leave” along with the number of days and the deducted amount. The deduction is made from gross pay before PF and TDS are computed. Generate clean salary slips with LOP reflected accurately using our salary slip generator.
Salary to Hourly Rate – The India-Correct Calculation
Most global salary-to-hourly tools use the US formula: Annual salary divided by 2,080 hours (40 hours per week times 52 weeks). This is incorrect for India for two reasons.
Why the US 2,080-Hour Convention Is Wrong for India
India’s standard workweek is 48 hours (6 days at 8 hours), not 40 hours (5 days at 8 hours). This is codified in the Factories Act, 1948 (Section 51) and carried forward under the new Occupational Safety, Health and Working Conditions Code, 2020. Even companies that operate a 5-day week still use the 48-hour cap as the overtime threshold for legal purposes.
Additionally, India does not follow the “2,080 hours per year” convention. The Indian equivalent, using the 26-day month standard, is 208 hours per month or approximately 2,496 hours per year. Using 2,080 overstates your hourly rate by about 20%.
The India-Correct Hourly Rate Formula
For a 6-day workweek (most common): Hourly rate = Monthly salary / 26 / 8 = Monthly salary / 208.
For a 5-day workweek: Hourly rate = Monthly salary / 22 / 8 = Monthly salary / 176 (or monthly salary / 22 / 9 = monthly salary / 198 if working 9-hour shifts).
Using the 30-day fixed method: Hourly rate = Monthly salary / 30 / 8 = Monthly salary / 240.
For overtime purposes, the Factories Act specifically mandates the 26-day, 8-hour framework (divisor of 208) to compute the ordinary hourly rate before applying the 2x overtime multiplier. Read our detailed guide on how to calculate overtime pay in India under the new labour codes.
Working Hours Limits Under Indian Law
Your hourly rate calculation must account for the legal working hours framework in India.
Factories Act, 1948 (Sections 51-56)
Maximum 48 hours per week. Maximum 9 hours per day. A rest interval of at least 30 minutes is mandatory after 5 hours of continuous work. Total spread-over including breaks must not exceed 10.5 hours in a day. Any work beyond these limits is overtime, payable at 2x the ordinary rate (Section 59). Quarterly overtime cap: 50 hours (extendable to 75 hours with exemption).
Shops and Establishments Acts (State-Specific)
These vary by state but generally limit working hours to 8-9 hours per day and 45-48 hours per week. Most states mandate overtime at 1.5x to 2x the ordinary rate. Maharashtra allows 9 hours per day and 48 hours per week. Delhi allows 8 hours per day and 48 hours per week. Karnataka allows 9 hours per day and 48 hours per week.
New Labour Codes (OSH Code, 2020)
The Occupational Safety, Health and Working Conditions Code, 2020, in force from 21 November 2025, standardises the maximum working hours and overtime provisions. The maximum spread-over is 12 hours per day including breaks. Overtime is payable at twice the ordinary rate. The 48-hour weekly cap continues.
Track your working hours accurately with our free time card calculator and manage timesheets using our timesheet template.
Which Divisor Does Your Company Use? How to Find Out
There is no universal law mandating one specific divisor for all salary calculations in India. The 26-day convention is standard practice — widely used, accepted by courts (particularly in gratuity and overtime contexts), and followed by most payroll software — but it is ultimately a convention, not a statutory mandate for regular salary division.
Here is how to confirm which method your employer uses.
Check Your Offer Letter or Employment Contract
Many offer letters specify: “For the purpose of salary computation, one day’s salary shall be calculated by dividing the monthly salary by 30” (or 26, or actual days). If your contract specifies a method, that is the method that applies to you.
Check Your Company’s HR Policy
Companies often have a payroll policy document that specifies the divisor for LOP, mid-month joining, and overtime. Ask your HR department for this document.
Check a Previous Salary Slip with LOP
If you have a past salary slip where LOP was deducted, reverse-engineer the divisor: divide your gross salary by the LOP amount, then divide by the number of LOP days. The result is the divisor your company uses.
Default Assumption
If your contract and policy are silent, the 30-day fixed divisor is the most commonly assumed default in IT and service sector companies. For manufacturing and factory environments, the 26-day divisor is more common. Our calculator shows both, so you can compare and verify.
Pro-Rata Salary for Mid-Month Joining or Exit
When an employee joins or leaves mid-month, their salary for that month is calculated on a pro-rata basis. The formula is identical to LOP in reverse.
Salary for partial month = (Monthly salary / Divisor) x Number of days worked
For example, an employee joining on the 11th of a 30-day month with a salary of Rs 60,000:
Using 30-day divisor: Days worked = 20. Salary = (60,000 / 30) x 20 = Rs 40,000.
Using 26-day divisor: Working days from 11th to 30th (excluding Sundays) might be approximately 17. Salary = (60,000 / 26) x 17 = Rs 39,231.
For employees leaving the company, the same pro-rata calculation applies to the final month. Use our full and final settlement calculator to compute the complete exit payout including the pro-rata salary, leave encashment, and other dues.
Hourly Rate for Freelancers and Consultants
If you are a freelancer setting your hourly rate, the salary-to-hourly conversion gives you a baseline. However, your freelance rate should be higher than the equivalent salaried hourly rate because as a freelancer you do not get employer PF, ESI, gratuity, health insurance, or paid leave. A common benchmark is to multiply the salaried hourly rate by 1.3 to 1.5 to account for these missing benefits and business costs.
For dedicated freelance rate planning, use our freelance rate calculator.
LOP Impact on Other Salary Components
LOP does not just reduce your gross pay — it has cascading effects on other salary components.
Impact on PF
If PF is calculated on actual basic pay for the days worked, LOP reduces the basic pay for that month, which in turn reduces both employee and employer PF contributions. This means less retirement savings for the LOP month. Use our PF calculator to check the impact.
Impact on ESI
LOP deductions reduce the gross salary for the month. If the reduced salary falls below the ESI wage ceiling, the employee may still be covered. If gross salary is already near the threshold, LOP could have implications for coverage calculations.
Impact on TDS
Lower gross salary in an LOP month means lower taxable income for that month, which may slightly reduce your TDS deduction. However, the annual tax liability adjusts at year-end. Use our TDS calculator to see the monthly impact.
Impact on Gratuity
Gratuity is calculated on the last drawn salary. If you have LOP in your final month, the reduced salary could technically lower your gratuity. However, most companies compute gratuity on the full monthly salary, not the LOP-reduced amount. Check your employer’s policy. Estimate your gratuity with our gratuity calculator.
Quick Reference – Per-Day and Hourly Rates at Common Salary Levels
Here is a ready reckoner for common monthly salary levels, using the 26-day and 30-day methods with 8-hour days.
Monthly Rs 20,000: Per day (26-day) Rs 769 | Per day (30-day) Rs 667 | Hourly (26-day) Rs 96 | Hourly (30-day) Rs 83.
Monthly Rs 30,000: Per day (26-day) Rs 1,154 | Per day (30-day) Rs 1,000 | Hourly (26-day) Rs 144 | Hourly (30-day) Rs 125.
Monthly Rs 50,000: Per day (26-day) Rs 1,923 | Per day (30-day) Rs 1,667 | Hourly (26-day) Rs 240 | Hourly (30-day) Rs 208.
Monthly Rs 75,000: Per day (26-day) Rs 2,885 | Per day (30-day) Rs 2,500 | Hourly (26-day) Rs 361 | Hourly (30-day) Rs 313.
Monthly Rs 1,00,000: Per day (26-day) Rs 3,846 | Per day (30-day) Rs 3,333 | Hourly (26-day) Rs 481 | Hourly (30-day) Rs 417.
Notice the consistent 15% gap between the 26-day and 30-day per-day rates. The 26-day method always produces a higher per-day rate because you are dividing by a smaller number. This means LOP deductions are larger under the 26-day method, something to be aware of when negotiating your compensation or reviewing your salary slip.
Understanding Your Salary Components
To use this calculator effectively, you should know what goes into your gross monthly salary. The standard Indian salary structure includes basic pay (typically 40-50% of gross under the new labour codes), HRA (House Rent Allowance), special allowance, conveyance allowance, and other components specific to your employer.
Read our complete guides on salary structure in India and its tax implications and types of allowances in salary to understand each component.
For tracking and managing work hours accurately — especially if you need to verify overtime claims or timesheet accuracy — check out our guide on how to calculate hours worked and our guide on understanding timesheets.
Other Free Salary and Payroll Tools from SalaryBox
Salary Calculator – Calculate in-hand salary from CTC or gross pay.
Salary Slip Generator – Generate professional salary slips with LOP reflected.
TDS Calculator – Estimate monthly and annual TDS deductions.
HRA Calculator – Compute your HRA exemption amount.
PF Calculator – Calculate Provident Fund contributions.
Gratuity Calculator – Estimate gratuity amount and eligibility.
Time Card Calculator – Track daily and weekly working hours.
Timesheet Template – Ready-to-use timesheet for hourly tracking.
FnF Calculator – Full and final settlement estimation.
Leave Encashment Calculator – Estimate leave encashment at exit.
Explore all tools on our free tools page.
Frequently Asked Questions (FAQ)
How do I convert my monthly salary to an hourly rate in India?
Divide your monthly salary by the number of working days in a month, then divide by the number of working hours per day. Using the most common Indian convention: Hourly rate = Monthly salary divided by 26 (working days) divided by 8 (hours per day) = Monthly salary divided by 208. This gives you the India-standard hourly rate, unlike the US convention of dividing annual salary by 2,080 hours.
What is the 26-day divisor and why is it used in India?
The 26-day divisor treats one month as having 26 working days — 30 calendar days minus 4 Sundays. It is the standard convention in Indian payroll, used for overtime calculations under the Factories Act, gratuity computation, and general salary-to-daily conversions. However, it is a convention, not a universal statutory mandate. Your employer’s offer letter or HR policy may specify a different divisor (such as 30 days or actual calendar days). Always check your employment terms.
How is LOP (Loss of Pay) calculated in salary?
LOP is calculated using the formula: LOP Deduction = (Monthly Salary / Divisor) x Number of LOP Days. The divisor can be 26, 30, the actual calendar days of the month, or the actual working days, depending on your company’s policy. For a Rs 50,000 salary with 2 LOP days, the deduction ranges from Rs 3,226 (31-day month) to Rs 3,846 (26-day divisor) depending on the method used.
Does the divisor affect my LOP deduction amount?
Yes, significantly. The 26-day divisor produces the highest per-day rate and therefore the largest LOP deduction. The 30-day divisor produces a lower rate. Using actual calendar days of the month (which can be 28, 30, or 31) produces the lowest deduction in 31-day months but the highest in February. The difference can be 15-40% depending on the methods compared. Our calculator shows all methods side by side so you can see the exact impact.
What are the maximum working hours per week in India?
Under the Factories Act, 1948, the maximum working hours are 48 hours per week and 9 hours per day, with a mandatory rest interval of 30 minutes after 5 hours of continuous work. State Shops and Establishments Acts generally limit hours to 45-48 per week. The new Occupational Safety, Health and Working Conditions Code (2020) continues the 48-hour weekly cap. Any work beyond these limits is legally overtime and must be compensated at 2x the ordinary rate.
Why is the US 2,080-hour convention wrong for India?
The US convention assumes a 40-hour workweek (5 days x 8 hours x 52 weeks = 2,080 hours per year). India’s legal standard is a 48-hour workweek (6 days x 8 hours). The Indian equivalent using the 26-day month standard is approximately 2,496 hours per year. Using 2,080 overstates your hourly rate by about 20%, giving a misleadingly high number. Always use the India-specific calculation.
How is salary calculated when joining mid-month?
Salary for a partial month is calculated pro-rata: (Monthly salary / Divisor) x Number of days worked. For an employee joining on the 16th of a 30-day month with Rs 60,000 salary using the 30-day divisor: Salary = (60,000 / 30) x 15 = Rs 30,000. The same formula applies for employees leaving mid-month during their final settlement.
Is LOP deducted before or after PF and TDS?
LOP is typically deducted from gross salary first, reducing the gross pay for the month. PF is then calculated on the reduced basic pay (for the days worked), and TDS is computed on the reduced gross income. This means LOP reduces not just your take-home but also your PF contribution for that month.
Can I use this calculator for freelance rate setting?
Yes, the salary-to-hourly conversion gives you a baseline hourly rate. However, as a freelancer, you should mark up this rate by 1.3x to 1.5x to account for benefits you do not receive (PF, ESI, gratuity, paid leave, health insurance). A salaried employee earning Rs 150 per hour actually costs their employer Rs 180-200 per hour when benefits are included. Your freelance rate should at least match the loaded cost.
Where can I check which divisor my company uses?
Check your offer letter or employment contract first — many specify the divisor explicitly. If not, check your company’s HR or payroll policy document. You can also reverse-engineer it from a past salary slip that had an LOP deduction: divide your gross salary by the LOP amount per day to find the divisor. If everything is silent, the 30-day fixed divisor is the most common default in IT and service sector companies, while 26 days is standard in manufacturing.
Conclusion
Your per-day rate and hourly rate are not just theoretical numbers — they determine your LOP deduction, overtime pay, pro-rata salary for partial months, and your full and final settlement. In India, the answer to the simple question “what is one day of my salary worth?” changes by 15-40% depending on which divisor method is used.
The SalaryBox Salary to Hourly, Per-Day, and LOP Calculator is the only India-specific tool that shows all three divisor methods (26-day, 30-day, and actual calendar days) side by side. Enter your salary once, see the full picture, verify your payslip, and know exactly what your time is worth.
Combine this with our salary calculator for CTC-to-in-hand conversion, our time card calculator for hours tracking, and our payroll system for end-to-end salary processing.
Try the salary to hourly calculator now — it is free, built for India, and shows the number your payslip is actually using.