Overtime is work performed beyond an employee's standard working hours, for which the law requires a higher rate of pay. In India, the rules on hours and overtime are set out in labour law, and under the Occupational Safety, Health and Working Conditions Code, overtime is generally payable at twice the normal rate of wages. For global employers, overtime is an area where assumptions from other countries do not transfer cleanly, so it is worth understanding the Indian position.
When does overtime apply in India?
Overtime is triggered when an employee works beyond defined daily or weekly limits. The core thresholds are these.
- Daily limit: work beyond about eight hours in a day can attract overtime.
- Weekly limit: work beyond about 48 hours in a week can attract overtime.
- Double the rate: overtime is generally payable at twice the normal hourly wage.
Who is covered by overtime rules?
Overtime entitlement does not apply equally to everyone, and the distinction matters for compliance. A few points stand out.
- Worker category: overtime protections mainly cover employees classed as workers, rather than those in managerial or supervisory roles.
- Consent and caps: there are limits on how much overtime can be worked over a period, and rules on consent.
- State variation: specific limits and rules can vary by state and are being aligned under the labour codes.
Overtime pay at a glance
The basic structure of overtime is easy to summarize, with the detail filled in by the applicable rules.
| Element | General position |
|---|---|
| Standard hours | About 8 per day, 48 per week |
| Overtime rate | Twice the normal wage |
| Mainly covers | Workers, not managers |
This information is for general guidance. Confirm current rules for your state and consult experts for your specific situation.
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