Overtime Rules Under New Labour Codes 2025: Updated OT Rate & Working Hours

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With the updated statement on India’s four labour codes 2025, the Indian government rolls out the rules on overtime policies for Indian workers, mainly the country’s bidi and cigar workforce.

Key Takeaway

Here are the top 4 key takeaways based on work hours duration in the Code of Wages Act

Employers can’t pay any of their employees less than the minimum wage.
Fixed working hours, preventing employees from being overworked.
Employers must issue the wage slips for the employees for their extra hours.
Employers would issue wage slips and a formal appointment letter.

History behind the overtime rules under the new labour codes

The first rule in the workers’ sectors was proposed in 1966 under the Bidi and Cigar Workers Act, which sets out the basic rules, such as that a typical working day could extend up to nine hours. Maximum 48 hours per week. And the annual leaves that workers receive after their 240 days of work in a calendar year.

Later in 2020, the labour codes were implemented, with a focus on occupational safety, health, and working conditions. India’s bidi and cigar workforce benefited from an expanded system of wage protection, social-security coverage, and workplace safeguards. The sector, now more formalised, moves forward with a stronger regulatory foundation, bringing greater stability to workers’ livelihoods across India.

IN the wages of code 2025, there is another revision of the rules related to workers’ overtime.

Overtime Rules Under New Labour Codes 2025

The new labour codes not only enhance the workers’ financial stability but also provide job security. Under the Code of Wages Act 2025, no employer will pay any employee a wage below the minimum wage notified by the Government. Earlier, previous wages applied only to the scheduled or fixed employment of daily wage workers. But the new act highlighted that the minimum wages apply only to scheduled employment, but also cover the daily wages of workers like bidi and cigar workers, or mine workers across sectors.

The rules under the new labour codes 2025 are,

1. Floor Wages

The Central Government will set floor wages based on an employee’s minimum living needs, such as food, clothing, and necessities. These wages will be revised periodically. A uniform floor wage structure helps prevent labour migration between states caused by wage disparities.

2. Overtime Wages

Employees would work 8 -12 hours per day, 48 hours per week. Employees are entitled to overtime pay at a rate of not less than twice their regular wages for work performed beyond standard working hours.

3. Time Limit for Wage Payment

To safeguard employee rights, wages must be paid within strictly defined timelines. Employers are legally required to ensure timely wage disbursements to all employees in accordance with the prescribed schedule. Moreover, workers are eligible for a Bonus after completing 30 days of work in a year.

Also Read: New Gratuity Rule 2025 Explained: Eligibility & Key Changes

How states will regulate overtime payment under the New Wages Code

While the national standard sets the code for workers’ overtime wages, it may vary by state. It is because the workers are the concurrent subject in India. So the states retain the power to specify,

Their daily and weekly working-hour limits
Daily or weekly work hours limit
Industry-specific exemption and relaxation

However, under section 27 of the code, all states must follow the baseline rules. It creates national consistency in how overtime pay is calculated.

Here are the following details of the State-wise overtime policy,

State/region	Normal working hours	Maximum overtime hours	Rate of overtime wages
Andaman and Nicobar Islands	Nine hours a day; 48 hours a week	One hour a day; 50 hours a quarter	Twice the rate of normal wages
Andhra Pradesh	Eight hours a day; 48 hours a week	Six hours a week	Twice the ordinary rate of normal wages
Arunachal Pradesh	–	–	–
Assam	Eight hours a day; 48 hours a week	Two hours a day; 50 hours a quarter	Twice the ordinary rate of wages
Bihar	Nine hours a day; 48 hours a week	One hour a day and 54 hours a week; the aggregate hours of overtime work shall not exceed 150 hours in a year	Twice the ordinary rate wages
Chandigarh	Nine hours a day; 48 hours a week	50 hours a quarter	Twice the rate of normal wages calculated by the hour
Chhattisgarh	48 hours a week and nine hours a day in a shop; 48 hours a week and 10 hours a day in a commercial establishment	Six hours in any week	Twice the ordinary rate of wages
Dadra and Nagar Haveli	Eight hours a day; 48 hours a week	Six hours a week	Twice the ordinary rate of wages
Daman and Diu	Eight hours a day; 48 hours a week	Six hours a week	Twice the ordinary rate of wages
Delhi	Nine hours a day; 48 hours a week	Six hours in any week; 150 hours in a year	Twice the rate of his normal remuneration, calculated by the hour
Goa	Eight hours a day; 48 hours a week	Six hours a week	Twice the ordinary rate of wages
Gujarat	Nine hours a day; 48 hours a week	125 hours in a period of three months	Twice the ordinary rate of wages
Haryana	Nine hours a day; 48 hours a week	50 hours a quarter	Twice the rate of normal wages calculated by the hour
Himachal Pradesh	Nine hours a day; 48 hours a week	50 hours a quarter	Twice the rate of normal wages calculated by the hour
Jammu and Kashmir	Nine hours a day; 48 hours a week	Three hours a week	Twice the ordinary rate of wages
Jharkhand	Nine hours a day; 48 hours a week	Six hours in any week and 150 hours in a year	Twice the ordinary rate of wages
Karnataka	Nine hours a day; 48 hours a week	50 hours a quarter	Twice the rate of normal wages
Kerala	Eight hours a day; 48 hours a week	50 hours a quarter	Twice the ordinary rate of wages
Madhya Pradesh	48 hours a week and nine hours a day in a shop; 48 hours a week and 10 hours a day in a commercial establishment	Six hours in any week	Twice the ordinary rate of wages
Maharashtra	Nine hours a day; 48 hours a week	125 hours in a period of three months	Twice the ordinary rate of wages
Manipur	Commercial establishments—seven hours a day; Shops—nine hours a day, and 48 hours a week	Not applicable	Twice the ordinary rate of wages
Meghalaya	Eight hours a day	Two hours a day	Twice the ordinary rate of wages
Nagaland	Eight hours a day; 48 hours a week	Two hours a day; 50 hours a quarter	Twice the ordinary rate of wages
Odisha	Nine hours a day; 48 hours a week	One hour a day; 50 hours a quarter	Twice the ordinary rate of wages
Puducherry	Eight hours a day; 48 hours a week	Two hours a day; 54 hours a week	Twice the ordinary rate of wages
Punjab	Nine hours a day; 48 hours a week	50 hours a quarter	Twice the rate of normal wages calculated by the hour
Rajasthan	Nine hours a day; 48 hours a week	One hour a day; 50 hours a quarter	One and a half times the ordinary rate of wages
Sikkim	Nine hours a day; 48 hours a week	Three hours a week	Twice the ordinary rate of wages
Tamil Nadu	8 hours a day; 48 hours a week	Six hours in any week	Twice the ordinary rate of wages
Telangana	10 hours a day; 48 hours a week	48 hours per week; 144 hours per quarter	Twice the ordinary rate of normal wages
Tripura	Eight hours a day; 48 hours a week	One and a half hours a day; 120 hours a year	Twice the ordinary rate of wages
Uttar Pradesh	Eight hours a day	Two hours a day; 50 hours a quarter	Twice the ordinary rate of wages
Uttarakhand	Nine hours a day	125 hours in a period of three months	Twice the ordinary rate of wages
West Bengal	Eight hours a day; 48 hours a week	One and a half hours a day; 120 hours a year	Twice the ordinary rate of wages

Also Read: 2-day Full and Final Settlement under New Labour Codes 2025

At the End,

The new wage code makes it easier for workers who earlier worked extra hours for free or instead of receiving the retail amount. However, due to state-level variation and sector-specific rules, there are multiple changes to overtime amounts and restrictions. It is essential that every company, regardless of the region it operates in, follows the code, as it directly impacts workforce satisfaction and operational efficiency.