Understanding Overtime Pay Regulations in India
Overtime pay in India is governed by several legislative acts, primarily the Factories Act, 1948, and the Minimum Wages Act, 1948. These regulations ensure fair compensation for employees who work beyond standard hours. According to the OSH Code, 2020, which will standardize labor laws from November 21, 2025, employees cannot work more than 9 hours a day or 48 hours a week without receiving overtime pay. This overtime is compensated at twice the ordinary rate of wages, known as the double rate.
While the national standard is clear, state-specific laws provide further guidelines. For example, the Factories Act limits overtime to 50 hours per quarter, whereas Maharashtra allows up to 125 hours and Telangana up to 144 hours per quarter. Understanding these variations is critical for compliance, especially for businesses operating across multiple states.