Employees putting in extra hours beyond their scheduled shifts will now be compensated at twice their regular wage rate. Yes, you read that right. The provision comes under India's new labour codes, set to take effect from April 1, 2026. It brings long-awaited clarity on overtime pay and working hour norms.
The government introduced the revamped framework on November 21, 2025, merging 29 existing labour laws into four comprehensive codes. These include the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code. The codes also outline limits on total working hours and mandate overtime pay at prescribed rates.
The move is aimed at standardising practices around extended work hours under the new regulatory framework.
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What are the working hours?
Under the new rules, the normal working hours remain capped at 8 hours per day and 48 hours per week. Any work beyond these limits qualifies as overtime and must be compensated at double the employee's regular wage. Additionally, employers are required to obtain the worker's consent before assigning overtime.
The updated codes are designed to ensure basic protections around rest, health, and work-life balance across sectors. While the changes have been welcomed, many employees remain uncertain about how the rules will apply to their specific roles and industries. Here's everything you need to know about the new provision.
Who are exempt from the overtime pay?
However, not all employees will be eligible for statutory overtime benefits. Managerial and administrative staff are typically excluded from the definition of “worker” under labour laws, and therefore may not qualify for overtime pay. For supervisory employees, eligibility depends on factors such as wage caps and the nature of their duties. Those performing largely managerial functions or earning above the prescribed limits may also be excluded.
Managerial employees should not regard overtime as a guaranteed income component and instead reassess their overall compensation structure. In contrast, non-managerial workers are expected to benefit directly from the new provisions.
What can you do if the employer refuses overtime pay?
In cases where employers fail to pay overtime dues, employees are advised to first raise the issue internally with their manager or organisation. If unresolved or the employer cannot be contacted, the worker can approach the relevant labour authorities, such as the Labour Commissioner or an Inspector-cum-Facilitator.
Complaints can also be escalated to wage tribunals or judicial magistrates. The complaint should have details of employment, nature of violation, and supporting evidence like payslips, attendance records, or employment contracts.
There are prescribed timelines for filing such complaints, typically ranging from two to five years from the date of violation. Employees may also seek assistance from trade unions or legal representatives, with unresolved disputes ultimately taken to labour courts or industrial tribunals.
Other provisions for workers
Beyond overtime provisions, the new labour codes also emphasise non-discrimination in employment practices. Employers are prohibited from discriminating based on gender, including transgender identity, in hiring, wages, or working conditions for similar roles.
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