Maximum Overtime Hours in India – Central vs State Caps Explained

There is no single national overtime ceiling that applies to every Indian employer. Under the OSH (Central) Rules, 2026, overtime is capped at 144 hours in any quarter, but that figure binds only establishments where the Central Government is the “appropriate government”. Most private employers (offices, shops, factories) are governed by state rules, and published state caps range from about 50 to 144 hours a quarter. In every case, overtime requires the worker’s consent and must be paid at twice the ordinary rate of wages. The legal source is the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”), in force since 21 November 2025.

The framework in one paragraph

The OSH Code sets the normal limits (8 hours a day, 48 hours a week), defines when work becomes overtime, fixes the double rate, and requires consent. It leaves the quantitative overtime ceiling to the “appropriate government”. The Central Rules, notified on 8 May 2026 (G.S.R. 345(E)), supply the central number. Each state either notifies its own OSH rules or, until it does, continues to apply its existing factory or Shops and Establishments rules. That is why the honest answer to “what is the maximum overtime?” is “it depends on your state, and the answer is still moving.”

What counts as overtime

Under the Central Rules, as reported:

• Daily-wage workers: work beyond 8 hours in a day is overtime.
• All other workers (for example, monthly-paid): work beyond 48 hours in a week is overtime.
• Secondary sources add that overtime is computed on a daily or weekly basis, whichever is more favourable to the worker. Confirm this against the rule text before relying on it.
• Work on a weekly holiday has overtime and compensatory-holiday implications under the Code.

So a monthly-paid employee who works 10 hours on Monday but only 38 hours across the rest of the week (48 total) may not have an overtime entitlement for that week under the central test. A daily-wage worker in the same pattern would.

The quarterly cap: what the numbers are

What the quarterly cap means in practice

A quarter has roughly 13 weeks. Converting each cap into an average weekly figure shows how different the regimes are:

This is a rough planning tool, not a legal test. The cap applies to the quarter, so a team can legally do heavy overtime in a few weeks and none in others, up to the ceiling. Daily spread-over limits, rest intervals and the weekly rest day still apply independently.

Once the cap is reached, further overtime is not permitted even if both employer and worker are willing. Consent does not extend the ceiling.

How overtime is paid

Overtime is paid at twice the ordinary rate of wages.

Illustrative calculation (the divisor and wage components depend on your state and wage definition; confirm with payroll counsel):

• Monthly wages: Rs 36,000
• Hourly rate: 36,000 / 26 days / 8 hours = about Rs 173.08
• Overtime rate (2x): about Rs 346.15 per hour
• 20 hours of overtime in the month: about Rs 6,923

The wage-definition issue. Under the Code on Wages, 2019, “wages” are defined with a rule that certain excluded components are capped at 50% of total remuneration, with the balance added back. Commentary suggests this can raise the base on which overtime is computed for employees whose pay is heavily weighted to allowances. This is a developing area, and we recommend a payroll review rather than assuming that basic pay alone is the base.

Overtime payment is a statutory entitlement. A compensatory day off does not, by itself, discharge the obligation to pay the double rate.

Consent: the requirement most employers under-document

A worker can be required to work overtime only with their consent. Practical steps:

• Obtain consent in writing or through an auditable system (an HR portal acknowledgement is better than a verbal agreement).
• Make consent specific to the overtime period or roster, not a blanket clause in the appointment letter.
• Record refusals and do not penalise a worker for declining.
• For women working in the early hours or late evening, additional conditions apply, including consent and safety arrangements such as transport, lit premises and CCTV.

A blanket “all employees must work overtime when required” clause in a contract is a poor substitute for per-instance consent and is vulnerable to challenge.

Which cap applies to you?

1. Is the Central Government the appropriate government for your establishment? If yes, apply the 144-hour cap from the OSH (Central) Rules, 2026.
2. If not, has your state notified its OSH rules? Check the state Gazette. If yes, apply the state cap.
3. If your state has not yet notified rules, identify the existing state rule that continues to apply (the state factory rules or Shops and Establishments Act) and the cap it carries.
4. If you operate in several states, build a state-wise matrix and apply each state’s cap to its employees.
5. If two sources conflict, apply the stricter cap and document your reasoning.

Special cases

• IT/ITES and export units: some states have granted exemptions or relaxed limits for these sectors. Confirm whether an exemption notification exists and whether it carries conditions.
• Contract labour: the principal employer remains responsible for compliance in many situations. Overtime done by contract workers can create liability for the principal employer, so check the contract and the Code’s provisions.
• Managerial and supervisory staff: treatment differs by provision, and a managerial title does not automatically take someone outside the overtime provisions.

Record-keeping and penalties

The Code permits electronic records. Maintain, per worker: hours worked, overtime hours, consent, rate paid and the running quarterly total. Overtime muster rolls were a feature of the earlier Factories regime, and equivalent records are expected under the new rules.

Contraventions of the Code can attract penalties and, in some cases, prosecution. The exact penalty depends on the provision and on whether it is a repeat offence. Because penalty provisions are detailed, we advise checking the Code’s penalty chapter before assessing exposure for a specific violation.

Employer compliance checklist

• Identify whether Central or State rules apply to each establishment
• Verify the current quarterly cap in the official Gazette for each state
• Set an internal cap below the legal ceiling
• Obtain and store written, specific overtime consent
• Configure payroll for the 2x rate and the correct wage base
• Track overtime per worker per quarter, with alerts before the cap
• Maintain attendance and overtime records
• Review contractor arrangements for overtime exposure
• Re-check state rules every quarter

Employee rights: what to do if overtime is unpaid or forced

• Keep your own record of hours (rosters, login data, messages).
• Check whether you consented to overtime and whether it was paid at the double rate.
• Raise the issue in writing with HR.
• You can approach the labour authorities under the Code if it is not resolved.
• Take legal advice before signing a settlement or resigning.

What is still unsettled

The OSH Code and Central Rules are less than a year old. We are not aware of reported higher-court rulings that interpret the overtime provisions in detail. Open questions include how courts will apply the consent requirement, how the wage definition will affect the overtime base, and how state caps will settle as each state notifies its rules. We will update this article as the position develops.

Frequently asked questions