Understanding Overtime Pay in Indian Factories: What Are the Rules and How Does It Work?

To calculate overtime in Indian factories, there are specific rules and regulations that need to be followed. In India, the calculation of overtime pay is typically based on the number of hours worked beyond the regular work hours as defined by the Factories Act, 1948.

Employers are required to pay employees at a higher rate for overtime work, usually at one and a half times the regular hourly rate. It is essential for both employers and employees to be aware of the overtime policies in place to ensure fair compensation for additional work hours.

If you have any specific questions regarding the calculation of overtime in Indian factories or need further clarification on the related regulations, feel free to ask for more information.

Overtime Pay Regulations Under Sec. 59

Under Sec. 59, it is mentioned that where a worker works in a factory for more than 9 hours in any day or for more than 48 hours in any week, he/she shall, in respect of overtime work, be entitled to receive wages at the rate of TWICE his/her ordinary rate of wages.

Overtime Hours of Work in a Quarter

The Act permits the state government to make rules related to the regulation of overtime hours of work. However, the total number of hours of overtime must not exceed 50 hours for a quarter. The Bill raises this limit to 100 hours. Rules in this regard may be prescribed by the central government as well.

Source: Factories (Amendment) Act 2016.

Reading the Factories Act is essential for anybody working in factories in any position.

Please go through the Factories Act 1946, Chapter VI - Working Hours, and clearly mention the overtime payment details.

"Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages."

Please check.