Quick answer: Overtime is work beyond the daily or weekly hour limit. Under the overtime rules India adopted with the Labour Codes, it must be paid at no less than twice the normal rate of wages, and only with the worker’s consent. The OSH Code, 2020 and its central rules cap overtime at 144 hours a quarter. Maharashtra’s amended Shops and Establishments Act sets the same 144-hour cap for Pune.
- Section 14 of the Code on Wages sets overtime pay at not less than twice the normal rate.
- Overtime is computed on “wages” as the Code defines them, not on basic pay alone.
- For monthly-rated workers, the daily wage is the monthly wage divided by 26.
- Maharashtra raised its quarterly overtime cap from 125 to 144 hours from 1 October 2025.
When does overtime apply in India?
When a worker crosses the daily or weekly limit. Under the OSH Code, that’s 8 hours a day for daily wagers and 48 hours a week for others.
Pune adds a state layer. The amended Maharashtra Shops and Establishments Act allows a 10-hour day and a 48-hour week.
The amending Bill on PRS lifts the quarterly overtime cap from 125 to 144 hours, deemed effective from 1 October 2025, and its statement of objects says overtime won’t be mandatory for workers.
Who counts as a worker matters too. The OSH Code excludes managerial and administrative staff. It also excludes supervisors earning over ₹18,000 a month. Most mid-level IT staff fall outside the statutory overtime rules, so their extra hours are governed by contract.
Rest days count. Work on a weekly rest day is paid at the overtime rate under the central wage rules.
How do you calculate overtime pay in India?
Three steps. Divide monthly wages by 26, divide again by 8, then double the result.
Let’s say a Pune support executive is a worker, with monthly wages of ₹31,200 under the Code’s definition. She works 12 hours of overtime in March.
| Step | Calculation | Amount |
|---|---|---|
| Daily wage | ₹31,200 ÷ 26 | ₹1,200 |
| Hourly wage | ₹1,200 ÷ 8 | ₹150 |
| Overtime rate | ₹150 × 2 | ₹300 an hour |
| March overtime | 12 hours × ₹300 | ₹3,600 |
Rounding follows the central rules, as summarised in KPMG’s note on the final Labour Code rules. Fifteen to 30 minutes counts as half an hour, and anything over 30 minutes counts as a full hour.
What mistake do employers make with overtime?
Paying it on basic alone. If basic here were ₹15,600, the overtime rate would drop to ₹150 an hour, half the legal figure. The Labour Ministry’s additional FAQs of 16 March 2026 confirm that overtime runs on wages as section 2(y) of the Code on Wages defines them.
Keep records. Log every overtime hour, with the worker’s consent, in your attendance and leave management system, because a wage claim without records is very hard to defend.
How does Remunance handle overtime for your India team?
Remunance runs overtime through payroll under its own Indian entity, so consent, hours and pay sit in one record. We check each role against the worker definition, the 144-hour quarterly cap and the Pune Shops and Establishments rules. Our overview of labour laws in India sets out the wider rules, and our compliance management service covers teams on your own entity. For shift-based support or operations teams, ask us to cost your overtime exposure.
What else do people ask about overtime in India?
Is overtime mandatory in India?
No. The OSH Code requires consent, and Maharashtra’s amendment says overtime won’t be mandatory.
What is the maximum overtime allowed in India?
144 hours a quarter under the OSH central rules. Maharashtra’s Shops and Establishments Act now sets the same cap for shops, offices and commercial establishments across the state, including Pune.
Do salaried employees get overtime in India?
Only if they’re “workers”. Managers, and supervisors earning over ₹18,000 a month, fall outside the statutory rule unless their contract or the minimum wage schedule covering them says otherwise.