Allowances for working on a Saturday, Sunday or on a Public holiday - how much an employee is entitled to be paid?

Hello HR professionals,

Can somebody help me with your inputs based on my query below regarding working on weekends and public holidays? I work for an IT company where Monday to Friday are the working days.

I would like to know how much an employee is entitled to be paid if he/she works on a Saturday, Sunday, or on a public holiday. Kindly guide on this as we need to create a policy on the same.

Those employees required to work on weekly holidays or public holidays should be paid at the overtime rate of wages applicable to the establishment. If such a public holiday is a national or festival holiday, the payment shall be according to the statutory provisions/rules applicable.

Thank you, Umakanthan. Can the overtime rate be fixed by the employer, or should we follow the labor law rules here?

The overtime has to be paid at twice the gross wages (not twice the basic and DA). The company is free to fix a higher overtime rate but not a lower one.

Any agreement or contract to pay overtime at lower rates is invalid ab initio, so the company will be liable to pay the differential wages and penalties on the same.