Overtime Pay Rules India 2025 — Working Hours, Double Pay & Your Rights

By Mulazim Team | Updated July 2025 | 7 min read

Overtime Rules — Key Numbers

48 Hours

Max working hours per week

2x Rate

Overtime pay — double the normal rate

9 Hours

Max daily working hours (Factories Act)

Overtime = work beyond 9 hours/day or 48 hours/week
Entitlement: double the ordinary rate of wages
Applies to factory workers and registered establishments
Managerial/supervisory staff — different rules may apply
Compensatory off can be offered instead (sector-specific)

Working late every day but not getting paid extra? In India, overtime pay is a legal right — not a favour. Know when you're entitled to it, how much you should get, and how to claim it.

Which Laws Govern Overtime in India?

Law	Applies To	Overtime Rate
Factories Act, 1948	Workers in registered factories	Double ordinary wages
Code on Wages, 2019	All employees; replaces multiple laws	Double ordinary rate
Shops & Establishments Acts (state)	Commercial establishments, offices, shops	Usually double rate (state-specific)
Mines Act, 1952	Mine workers	Double ordinary wages

Legal Limits on Working Hours

Under Factories Act:

Maximum 9 hours per day
Maximum 48 hours per week
Spread-over should not exceed 10.5 hours
At least 1 day off per week (rest day)
Overtime maximum: 50 hours in any quarter (can be extended with government permission)

Under Code on Wages 2019 (National Level):

Maximum 8 hours/day (or as prescribed by government)
Maximum 48 hours/week
Overtime rate: double ordinary rate

How is Overtime Pay Calculated?

Formula:

Overtime Pay = (Monthly Gross ÷ 26 working days ÷ 9 hours) × 2 × Overtime hours worked

      Example: Monthly Gross: ₹30,000. Worked 4 extra hours on a Saturday (normally off).

      Hourly rate = ₹30,000 ÷ 26 ÷ 9 = ₹128.2

      Overtime pay = ₹128.2 × 2 × 4 = ₹1,026 extra

Who is Entitled to Overtime?

In India, overtime pay primarily applies to workmen/workers — defined under labour laws as employees doing manual, technical, operational, or clerical work.

Category	Overtime Entitlement
Factory workers	Yes — double rate (Factories Act)
Shop/establishment workers	Yes — per state Shops Act
Managers / supervisors	Generally not — typically excluded from workmen definition
IT professionals	Depends — some states exempt IT sector from standard hours
Government employees	Governed by service rules

Many IT companies ask employees to sign contracts waiving overtime rights or are covered by state IT exemptions. Check your appointment letter and your state's IT/ITES notification under Shops & Establishments Act.

Night Shift — Additional Rights

Under various state laws and the Factories Act:

Night shift workers (usually 10 PM to 6 AM) may have additional allowances
Women cannot be employed in night shifts in factories without safety measures (Factories Act amendment)
Many companies offer night shift allowance (not legally mandated for all, but common practice)

Holiday / Sunday Work — What You're Owed

Day	Entitlement
Weekly off (Sunday / rest day)	Compensatory off + overtime pay if made to work
National Holiday (Republic Day, Independence Day, Gandhi Jayanti)	Holiday pay (double) or compensatory off
Public/Festival Holiday	Per company policy / state law — usually single or double pay

What to Do If Overtime is Not Paid

Document the overtime — screenshots of late-night emails, attendance records, project logs
Email HR / manager requesting overtime payment — keep record
File complaint with Labour Inspector under Factories Act / Shops Act / Code on Wages
Labour Commissioner office — conciliation and recovery
Labour Court — if amounts are significant and internal resolution fails

Under the Code on Wages, non-payment of overtime is a punishable offense — fine up to ₹50,000 for first offense, up to ₹1 lakh for repeat offenses.

Code on Wages, 2019: Download from Ministry of Labour

Overtime Not Paid? Ask Mulazim AI

Tell us your work hours, salary, and situation — we'll calculate what you're owed and guide you.

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