Under Indian labour law, your standard working day is 9 hours and your standard week is 48 hours. Any hour you work beyond that is overtime — and your employer is legally required to pay you at least twice your ordinary wage rate for it. That right cannot be signed away in an employment contract, and it cannot be quietly ignored.

Here is a practical guide to what the law actually says, how to calculate what you are owed, and what to do when an employer refuses to pay.

What Indian Law Says About Working Hours

Two main laws govern working hours in India, and which one applies to you depends on where you work.

The Factories Act, 1948 covers workers employed in factories — any premises using power and employing 10 or more workers, or any premises employing 20 or more workers without power. It sets a hard ceiling of 9 hours per day and 48 hours per week for ordinary time. The total spread of your working day cannot exceed 10.5 hours. You are entitled to a rest interval of at least 30 minutes after every 5 hours of continuous work. One full day off per week is mandatory.

The Shops and Commercial Establishments Acts cover everyone else: retail workers, IT/ITES employees, bank staff, hospitality workers, and most white-collar office employees. These acts are state-specific — Karnataka, Maharashtra, Delhi, and others each have their own version — but they broadly mirror the Factories Act’s 9-hours-a-day, 48-hours-a-week baseline. Maximum working hours (including overtime) are capped at 10 to 12 hours per day depending on the state.

Key point for IT professionals: Many technology workers in cities like Bengaluru, Hyderabad, and Pune operate under their state’s Shops Act, not the Factories Act. This matters because overtime rates differ slightly, and so do quarterly caps.

Overtime Pay Rates: What You Are Actually Owed

Under the Factories Act

Section 59 of the Factories Act is unambiguous: overtime is paid at twice the ordinary rate of wages. That means if you work one hour beyond your 9-hour day or 48-hour week, your employer owes you 2x your hourly ordinary rate for that hour.

“Ordinary rate of wages” means your basic salary plus dearness allowance (DA). It does not include HRA, conveyance allowance, medical reimbursement, special allowances, or any performance bonus. Many employers calculate overtime on the full CTC — which is legally wrong. The correct base is basic + DA.

Example: Manasi works at a factory in Pune. Her monthly basic salary is ₹18,000 and her DA is ₹2,000, making her ordinary wage ₹20,000/month. Her hourly ordinary rate is ₹20,000 divided by 26 divided by 9 = approximately ₹85.47. If she works 5 hours of overtime in a month, she is owed 5 x ₹85.47 x 2 = ₹854.70 in overtime pay. Her employer cannot pay her less.

Under the Shops and Establishments Acts

Most state Shops Acts also mandate double time for overtime hours. Some older state acts specify 1.5x for the first two hours and 2x beyond that — check your specific state’s current act. In either case, overtime must be paid in the same wage period as the hours worked; it cannot be deferred to the following month.

Overtime Limits: How Many Hours Can Your Employer Demand?

Your employer cannot demand unlimited overtime. Under the Factories Act, a worker cannot be required to work more than 50 hours of overtime per quarter in most industries. Some states have recently revised this upward — Telangana and Maharashtra now allow up to 144 hours per quarter in certain sectors; other states cap it at 125 hours. But even within those caps, overtime requires your agreement — you cannot be compelled to work overtime without consent.

The OSH Code, 2020 — which Parliament has passed but which has not yet been notified nationally as of July 2026 — proposes to standardise the quarterly cap at 125 hours across all covered establishments and to require written worker consent before any overtime is assigned.

Women and Working Hours: What Has Changed in 2026

Historically, the Factories Act prohibited women from working night shifts (roughly 7 PM to 6 AM) in factory settings. This has been progressively liberalised at the state level over the past decade.

The OSH Code 2020, when it comes into force, will remove the blanket prohibition and allow women to work night shifts across all industries — but only with mandatory safeguards: written consent from the employee, door-to-door GPS-tracked transport, CCTV surveillance in work areas, presence of female security personnel, and an accessible Internal Complaints Committee (ICC) under the POSH Act.

Many states, including Maharashtra, Karnataka, Tamil Nadu, and Telangana, have already amended their Shops and Factories Acts to permit women in night shifts with equivalent safeguards. If you are a woman being asked to work nights, verify that your employer has implemented all required safety measures. Refusing to provide them is not a minor oversight — it is a legal violation. Read our full guide to the POSH Act and workplace rights.

What Employers Cannot Legally Do

Compensatory leave in place of cash. Some employers offer a “comp off” day instead of overtime pay. Under the Factories Act, this substitution is only valid if the worker agrees in writing and the leave is granted within the same quarter. You cannot be forced to accept leave in place of cash overtime.

Waiving overtime rights by contract. An employment contract that says “overtime is included in your CTC” is unenforceable against a statutory overtime entitlement. The right is created by law, not by contract, and the law cannot be contracted out of.

Requiring more than the permitted quarterly cap. If your employer regularly schedules overtime beyond 50 hours per quarter, they are in violation and face inspection, fines, and prosecution under the relevant act.

Calculating overtime on a suppressed base. If your employer sets your basic salary at 10-15% of your CTC to minimise overtime liability, this is a known compliance risk. Labour courts have disallowed artificially suppressed basic components when calculating statutory dues.

How to Claim Unpaid Overtime

Step 1: Document everything. Collect attendance records, access-card logs, shift rosters, emails, or any other evidence of hours worked beyond your standard schedule. WhatsApp or email messages asking you to “stay back” are useful.

Step 2: Raise it internally. Formally email your HR department stating the hours, the applicable law, and the amount owed. Keep the written record.

Step 3: File a complaint with the Labour Commissioner. If internal escalation fails, file a complaint with the Labour Commissioner in your district. There is no filing fee. Inspectors have powers to inspect records, issue notices, and direct payment.

Step 4: Approach the Labour Court. Unresolved disputes can be taken to the Labour Court under the Industrial Disputes Act. Legal aid is available free of charge in most states for low-income workers.

You can find legitimate job opportunities that respect your legal rights — without paying a single placement fee — on e People India. Also see our guide on minimum wages in India 2026 for the full picture of your pay rights.

Frequently Asked Questions

Is overtime calculated on my full CTC or just basic salary?

Under the Factories Act, overtime is calculated on your “ordinary rate of wages” — basic salary plus dearness allowance only. HRA, conveyance, and other allowances are excluded. You are entitled at minimum to the basic+DA calculation.

My employer says overtime is included in CTC. Is that legal?

No. A clause bundling overtime into a fixed CTC cannot override your statutory right to overtime pay. If you regularly work more than 9 hours a day or 48 hours a week, you are owed additional overtime payment regardless of what your offer letter says.

What is the maximum overtime I can be required to work?

Under the Factories Act, 50 hours per quarter in most states (some states have raised this to 125 or 144 hours). Beyond the applicable cap, you have the right to refuse overtime without disciplinary consequence.

Can my employer make me take comp off instead of overtime pay?

Only with your written agreement and only if the compensatory leave is granted within the same quarter. You cannot be unilaterally given leave instead of cash.

Are women allowed to work night shifts in India?

Many states now permit it — including Maharashtra, Karnataka, and Tamil Nadu — with mandatory safeguards: written consent, CCTV, safe transport, female security, and an active POSH committee. The OSH Code 2020 will extend this nationally when notified.

What if my employer retaliates for raising an overtime complaint?

Retaliation for asserting a statutory labour right — demotion, adverse appraisal, or dismissal — is itself an offence under the Industrial Disputes Act. Document any retaliatory action and raise it as a separate complaint with the Labour Commissioner.

Know Your Rights. Find a Job That Respects Them.

India’s labour laws give you real protections — but you have to know what they are to use them. Overtime is not a favour your employer does you; it is a statutory payment you earned. The law has been clear on this since 1948.

Browse verified openings on e People India — where every listing is fee-free for candidates. Employers looking to build a compliant team can post a job here.

Anthony is a workforce compliance writer at e People India, covering India’s labour laws, employment rights, and hiring practices for job seekers and HR teams.