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

Under the Code on Wages, 2019, an employee whose minimum wage is fixed by the day works beyond the normal working day. For each hour of the excess work, the overtime rate must be:

The overtime rate must be not less than twice the normal rate of wages for every hour or part of an hour worked beyond the normal working day, for employees whose minimum wage is fixed by the hour, day or a longer prescribed period.

  1. ANot less than one and a half times the normal rate of wages
  2. BNot less than twice the normal rate of wagesCorrect
  3. CEqual to the floor wage per hour
  4. DNot less than three times the normal rate of wages

Explanation

Section 14 requires overtime for every hour or part of an hour in excess at a rate not less than twice the normal rate of wages. One and a half times is a distractor from other practices; it is below the statutory minimum.

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