Setting Up of Business, Industrial and Labour Laws · The Code on Wages, 2019

Overtime Wages and Less Than Normal Working Day

Updated 11 October 2026 · Fact-checked

Under Section 14 of the Code on Wages, 2019, an employee whose minimum wage is fixed by the hour, day or a longer period must get overtime for every hour or part of an hour beyond a normal working day, at not less than twice the normal rate. Under Section 10, a day-rated employee who works fewer hours gets full-day wages, unless unwilling to work.

Understand Wages for Overtime and Less Than Normal Working Day

The Code on Wages, 2019 first fixes a minimum rate of wages. It then protects the employee in two situations: when the employee works longer than a normal day, and when the employee works shorter than a normal day.

Overtime (Section 14). The appropriate Government may fix the hours that make a normal working day (Section 13). If an employee whose minimum rate is fixed by the hour, by the day or by a longer prescribed wage-period works more hours than that on any day, the extra work is overtime. The employer must pay for every hour, or part of an hour, worked in excess. The overtime rate must not be less than twice the normal rate of wages. Part of an hour counts as a full hour of overtime for payment.

Less than a normal day (Section 10). Take an employee whose minimum rate is fixed by the day. If the employer gives work for fewer hours than a normal working day, the employee is still entitled to wages as if a full normal day was worked. The reason is simple: the shortfall is the employer's failure to provide work, so the employee should not suffer.

There are exceptions. The employee does not get full-day wages where the failure to work is caused by the employee's own unwillingness to work and not by the employer's omission to provide work. Nor does the employee get full-day wages in other cases and circumstances that are prescribed.

Related rules sit in Section 13. The Government may provide a day of rest in every seven days and may provide that work on a rest day is paid at not less than the overtime rate. Certain classes, such as employees in unforeseen emergencies or in essentially intermittent work, are covered only to the extent and on the conditions prescribed.

Key rules to remember

Overtime rate (Section 14): Overtime rate ≥ 2 × normal rate of wages; Twice is the floor. The employer may pay more but never less.
Overtime pay: Overtime pay = overtime hours (part hour counted as a full hour) × overtime rate; Section 14 says 'every hour or for part of an hour', so round up any part hour.
Overtime hours: Overtime hours = hours worked − hours in a normal working day; The normal working day is the number of hours fixed by the appropriate Government under Section 13.
Short-day wages (Section 10): Wages = full normal day's wages, for a day-rated employee who worked fewer hours; Not payable if the failure to work is due to the employee's unwillingness, or in other prescribed cases.
Work on a rest day (Section 13(1)(c)): Rate for rest-day work ≥ overtime rate; This applies where the Government provides for payment for rest-day work.

How to solve Wages for Overtime and Less Than Normal Working Day questions

Use this order for any problem or theory question on overtime or short-day wages.

1Identify how the minimum rate is fixed: by the hour, by the day, or by a longer wage-period. Section 14 and Section 10 apply to the stated wage bases.
2Note the hours in a normal working day and the hours actually worked.
3If hours worked exceed the normal day, apply Section 14. Count excess hours, treating any part of an hour as a full hour.
4Work out the normal hourly rate. For a day rate, divide by the hours in a normal day.
5Multiply the rate by 2 (or the higher rate stated) and then by the overtime hours.
6If hours worked are fewer than the normal day, apply Section 10. Ask why: employer gave less work, or employee was unwilling.
7State the conclusion: amount payable, with the section cited, and mention any prescribed exception.

Quickest way: Rate, excess, double

When to use it: Use for numerical questions where a day rate and hours worked are given.

Hourly rate = daily wage ÷ normal hours.
Excess hours = hours worked − normal hours, rounded up for any part hour.
Overtime = excess hours × hourly rate × 2.
Add the normal day's wage to get total pay for that day.
For a short day, ignore hours and pay the full day unless unwilling.

Common mistakes in Wages for Overtime and Less Than Normal Working Day

Paying overtime at 1.5 times or at the normal rate.
Students carry over rates from older laws or other countries.
Fix: Write 'not less than twice the normal rate' from Section 14 and use 2× in every calculation.
Ignoring part of an hour.
Students compute exact minutes and pay pro rata.
Fix: Section 14 covers 'every hour or for part of an hour'. Count any part hour as a full hour of overtime.
Paying only for hours worked on a short day.
Students assume pay always follows hours.
Fix: Under Section 10 a day-rated employee gets a full normal day's wages when the employer failed to provide full work.
Giving full-day wages even when the employee refused to work.
Students forget the proviso.
Fix: Check the reason. If the failure is due to the employee's unwillingness and not the employer's omission, full-day wages are not due.
Treating Section 13 as the source of the double rate.
Section 13 deals with normal day and rest day, so students blur sections.
Fix: Cite Section 14 for overtime at twice the rate. Cite Section 13 for fixing hours, rest days and rest-day work at not less than the overtime rate.

Worked examples

Example 1

Ramesh is employed at Pune by Sahyadri Engineering Ltd. His minimum wage is fixed at ₹800 per day for a normal working day of 8 hours. On one day he works 10 hours. Compute the amount payable for that day under the Code on Wages, 2019.

Show the solution

His wage is fixed by the day, so Section 14 applies to work beyond a normal working day.
Normal hourly rate = ₹800 ÷ 8 = ₹100.
Overtime hours = 10 − 8 = 2 hours.
Overtime rate must be not less than 2 × ₹100 = ₹200 per hour.
Overtime pay = 2 × ₹200 = ₹400.
Total for the day = ₹800 + ₹400 = ₹1,200.

Answer: Ramesh must be paid at least ₹1,200 for the day: ₹800 normal wages plus ₹400 overtime under Section 14.

Example 2

Meena, a day-rated employee with a normal working day of 8 hours, reports to a factory in Surat. The employer gives her work for only 5 hours because raw material was not available. Another employee, Kiran, was given full work but left after 4 hours as he did not want to work. What wages are they entitled to?

Show the solution

Section 10 applies to employees whose minimum rate is fixed by the day and who work less than the requisite hours.
General rule: such an employee gets wages as if a full normal working day was worked.
Meena: the shortfall is due to the employer's omission to provide work. The proviso does not apply, so she gets full-day wages.
Kiran: the employer provided work and he left of his own unwillingness. Proviso (i) applies, so he is not entitled to full-day wages.
Kiran is entitled to wages for the work actually done, since Section 10 only withholds the full-day entitlement. Other prescribed cases may also limit the entitlement.

Answer: Meena is entitled to wages for a full normal working day under Section 10. Kiran is not entitled to a full day's wages because his failure to work was caused by his unwillingness; he gets wages for the work done.

Exam tips

Quote the key phrase 'not less than twice the normal rate of wages' and cite Section 14.
In theory answers, state the order: provision, facts, conclusion. Name Section 10 for short days and Section 14 for overtime.
In numericals, show the hourly rate first. Examiners award marks for the method even if arithmetic slips.
Remember the proviso to Section 10. Questions often hide an employee's unwillingness in the facts.
Mention Section 13 briefly when rest days or normal-day hours come up, but do not mix it with the overtime rate.

Practice questions from The Code on Wages, 2019

Wages for Overtime and Less Than Normal Working Day in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CMA IntermediateWages for Less Than Normal Working Day and Overtime Work

Wages for Overtime and Less Than Normal Working Day: frequently asked questions

What is the overtime rate under the Code on Wages, 2019?

Section 14 says the overtime rate must not be less than twice the normal rate of wages. The employer can pay more than double, but not less.

Is part of an hour counted as overtime?

Yes. Section 14 requires payment for every hour or for part of an hour worked in excess of a normal working day. So a part hour is paid as a full hour.

When does an employee get full-day wages for a short day?

Under Section 10, a day-rated employee who works fewer hours than a normal day gets wages as if a full day was worked. This does not apply if the failure to work is due to the employee's unwillingness, or in other prescribed cases.

Who decides the hours of a normal working day?

The appropriate Government may fix the hours that make a normal working day, including intervals, under Section 13. It may also provide a rest day in every seven days and pay for work on that day at not less than the overtime rate.