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

Kavita's minimum wage is fixed by the hour at Rs 80, and her normal working day is 8 hours. She works 8 hours 20 minutes on a day. Under Section 14 of the Code on Wages, 2019, how must the extra 20 minutes be treated?

The extra 20 minutes must be paid as a full hour of overtime at not less than twice the normal rate, here at least Rs 160. Section 14 requires overtime payment for every hour or part of an hour worked beyond the normal working day.

  1. APaid as overtime for a full hour at not less than twice the normal rateCorrect
  2. BIgnored because overtime applies only after a full hour
  3. CPaid at the normal rate of Rs 80 for 20 minutes
  4. DPaid at one and a half times the normal rate for 20 minutes

Explanation

Section 14 requires payment for every hour or for part of an hour worked in excess of the normal day, at not less than twice the normal rate. So 20 minutes counts as one hour, giving at least 1 x Rs 160 = Rs 160 as overtime. Paying pro rata at the normal rate or ignoring the part-hour breaches the Section.

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