Working Hours and Overtime in India

What Are the Standard Working Hours in India?

In India, labor laws such as the Factories Act, 1948, regulate working hours to ensure employee welfare. For adult workers (aged 18 or older), the standard working hours are capped at 9 hours per day and 48 hours per week. A minimum meal interval of 30 minutes must be observed by employees who work more than 5 hours in a day. Typically, working hours from Monday through Friday are from 9:00 AM to 6:00 PM, including a one-hour lunch break.

Maximum Working Hours in India

In India, the typical workweek is 40 hours, with 8 hours per day. It can be extended to 48 hours, including breaks, only with client approval and careful consideration of legal requirements and job needs. The private sector often follows state Shops and Establishment Acts (SEAs), which cover working hours and other employment conditions.

The Factories Act, 1948, stipulates that adult workers should not work more than 9 hours a day or 48 hours a week. Any work beyond these limits is considered overtime and must be compensated accordingly. However, certain exceptions exist where overtime is allowed, such as in cases of urgent repairs or unforeseen circumstances that may affect factory operations. Even in such scenarios, the total number of hours worked, including overtime, should not exceed 10.5 hours per day.

Industry-Specific Exceptions

Certain industries in India have unique working hour regulations due to the nature of their operations:

 
• Healthcare: Medical professionals often work in shifts to provide 24/7 patient care, leading to variations in standard working hours.
 
• Transportation: The Motor Transport Workers Act, 1961, regulates working hours for employees in the transportation sector, stipulating a maximum of 8 hours per day and 48 hours per week, with provisions for overtime pay for additional hours worked.
 
• IT Industry: The working hours in the IT industry are often governed by the Shops and Establishments Act of the respective state. Generally, employees are allowed a maximum of 9 hours of work per day and 48 hours per week, with provisions for overtime pay for additional hours.

Managerial and Exempt Employees

Under Indian labor laws, managerial or supervisory personnel are often classified as exempt employees. According to the Factories Act, 1948, individuals employed in a managerial or administrative capacity, or those in a supervisory role earning above a certain threshold, are not entitled to overtime pay and are exempt from standard working hour restrictions. This means they may be required to work beyond the typical 9-hour day or 48-hour week without additional compensation.

Statutory Full-Time Working Hours in India

In India, full-time employment is legally defined as working 48 hours per week, typically spread over six days with one mandatory day off. This standard applies across various industries and roles, ensuring a uniform approach to full-time work. However, specific sectors may have different norms based on operational requirements and state-specific legislation.

Overtime Regulations in India

What Counts As Overtime in India?

In India, any work performed beyond the standard working hours – 9 hours per day or 48 hours per week – is considered overtime. Employees engaged in such extended hours are entitled to overtime compensation, except for those in managerial or supervisory positions who are classified as exempt under labor laws.

Maximum Overtime in India

The Factories Act, 1948, imposes a cap on overtime to prevent employee exploitation. Specifically, overtime is limited to 50 hours per quarter in most industries. Employers who require employees to work beyond this limit may face legal penalties, including fines and sanctions, for non-compliance with labor regulations.

Overtime Payout Rates in India

Indian labor laws mandate that overtime work be compensated at twice the regular wage rate. This "double pay" applies uniformly across various sectors and is designed to fairly remunerate employees for extended working hours. There are no specific variations in overtime pay based on particular days, such as weekends or public holidays, unless stipulated by individual employment contracts or company policies.

Rest Periods and Breaks in India

The Factories Act, 1948, ensures that employees receive adequate rest periods during their workday. Employees are entitled to a minimum rest interval of 30 minutes after every 5 hours of continuous work. Additionally, there should be a weekly holiday, typically Sunday, to provide rest between workweeks. Employers are responsible for implementing these rest periods and ensuring that work schedules comply with legal requirements.

Night Shifts and Weekend Regulations

Indian labor laws define night shifts as work performed between 10:00 PM and 6:00 AM. Employees working during these hours may be entitled to additional compensation or allowances, often referred to as night shift differentials, to account for the inconvenience and potential health impacts associated with nocturnal work. Weekend work, particularly on designated rest days like Sunday, may also attract additional pay or compensatory time off, depending on company policies and employment agreements.

How Playroll Simplifies Employer Responsibilities and Compliance

Expanding your workforce across international borders is an exciting step, but it can be challenging to keep up with ever-changing local labor laws and regulations in different countries. That’s the advantage of using an Employer of Record like Playroll:

• ‍Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
• Stay compliant: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for working hours, overtime regulations, and more.
• ‍Pay your team accurately: Ensure your international employees and global contractors are paid on time, every time, and set up centralized global payroll processes.