Glossary
Overtime
Overtime refers to the additional hours worked by an employee beyond the regular working hours prescribed by the employer or applicable labour laws. Employees who work overtime may be entitled to overtime wages at the prescribed rate, depending on the applicable law and employment terms.
Importance of Overtime
- Ensures employees are fairly compensated for extra working hours.
- Helps organizations manage increased workload and business demands.
- Supports accurate payroll processing and overtime wage calculations.
- Improves workforce planning during peak business periods.
- Promotes compliance with working hour regulations.
Legal Compliance, Policy & Regulations
Overtime wages and working hours are governed by the Code on Wages, 2019, and the Occupational Safety, Health and Working Conditions Code, 2020, along with the applicable State Rules. Eligible employees who work beyond the prescribed working hours must be paid overtime wages in accordance with the applicable legal provisions.
