Overtime Laws in India: When Does It Start and What's the Minimum Wage?

Hi everyone, is there any law regarding overtime? If yes, then after how many hours per week can it be counted as overtime, and what is the minimum wage for overtime? Is it applicable to each and every firm, company, or organization in India?

If your organization is covered under the Shops Act, you may refer to the Shops Act. If you are covered under factories, you may refer to the Factories Rules. Most Shops Acts state that employees are entitled to twice their normal wages, except in some states.

Thank you.

Understanding Overtime Regulations in India

There are rules regarding overtime, both in the Factories Act and the Shop and Establishment Acts. Depending on what applies to you—such as which state you are in—the actual rules may vary.

In general, working beyond 9 hours a day or 48 hours a week is considered overtime. Overtime is to be paid at twice the ordinary rate of wages (check the research button, it's discussed before). There is a limit of 50 hours a quarter, 2 hours a day, or 6 hours a week, depending on which state you are in and whether it’s a factory or a shop/establishment.

You also need to ensure that overtime does not result in the employee doing regular 12 or 16-hour shifts under the guise of overtime. You will get into serious trouble for that.

You need to pay double the wages for hours worked beyond 8 hours in a day and for hours worked beyond 48 hours in a week, as specified in the relevant acts.

You may refer to the Factories Act if your business falls under the category of an industry, or the Shops & Establishment Act if it is not a factory, regarding working hours.

Regards