- Overtime will be paid at twice the rate of Salary
- What is the purpose of the new rules?
- What do the rules say about overtime?
New Overtime Rules: New labor laws have come into effect from April 1. This has brought about significant changes in the Indian working class. Under these rules, employees who work more than the prescribed hours can receive significantly more pay or overtime. This new framework clarifies overtime rules and aims to achieve a better work-life balance in all sectors. Employees who work more than their scheduled hours will now be paid at double the rate of their regular pay. This rule comes under India’s new labor law, which came into effect on April 1, 2026. This has resolved the long-standing issue of overtime pay and working hours.
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What is the purpose of the new rules?
The government introduced this new framework on November 21, 2025.
In this, 29 existing labor laws were merged into four major codes.
These include ‘Wage Code’, ‘Industrial Relations Code’, ‘Social Security Code’ and ‘Occupational Security Code’.
The aim of these changes is to harmonize overtime and working hours rules across the country.
What do the rules say about overtime?
According to the new rules, employees should not work more than 8 hours in a day or 48 hours in a week. Any additional time beyond this limit will be treated as overtime. Importantly, such additional work should be remunerated at double the normal rate of pay.
Employers require consent of employees
Employee consent is another important safeguard. Employers must obtain the approval of employees before paying overtime. This will strengthen the rights of employees and ensure that extra hours are not imposed on them. The main objective is to provide better working conditions and more time for rest.
Who doesn’t benefit from overtime?
Despite the increased protections, not every employee is entitled to overtime pay. Labor laws generally exclude managers and administrative employees from the category of “employees”. Therefore, they cannot receive legal overtime benefits. Supervisory staff is a more complex category. Their eligibility depends on several factors such as their salary range and nature of work. Those who work as managers or whose salary exceeds a certain limit, may also be exempted from overtime rules.
What if you don’t get paid for overtime?
If the employer refuses to pay overtime, the employees should first try to resolve the issue among themselves. Failing this, they can take the matter to a labor authority such as the Labor Commissioner or Inspector-cum-Facilitator. Formal complaints can also be lodged with the Wage Tribunal or Judicial Magistrate. Supporting documents like pay slips, attendance records and employment contracts play a vital role in such cases. Employees generally have two to five years from the date of the violation to file a complaint.
In addition to overtime, the new labor laws also emphasize proper behavior in the workplace. Employers are prohibited from discriminating on the basis of gender (including transgender identity) in recruitment, pay and working conditions for similar positions.
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