Overtime Pay for Contract Workers: Does the Double Rate Apply to You?

Please share if the double rate of overtime per hour applies to contract workers.

Dear Gadkari,

It depends on the type of establishment in which the contract labor is engaged. If it is a factory, it shall be twice the rate of ordinary wages (Sec. 59(1) of the Factories Act, 1948). In any other case, it shall be the overtime rate fixed by the appropriate government in the minimum wages notification (Sec. 14 of the MW Act, 1948).

Dear Gadkari,

As rightly mentioned by Mr. Umakanthan M, it should be double the ordinary wages, and this practice is commonly followed in Maharashtra. Additionally, some companies offer compensatory time off (compoff) instead of double payment for extra working hours.

Thank you.