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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, minimum wage for a worker is fixed by the day. He works two hours beyond the normal working day. What is the minimum overtime rate the employer must pay for each such hour?

The employer must pay overtime at not less than twice the normal rate of wages for every hour or part of an hour worked in excess of the normal working day, where minimum wages are fixed by the hour, day or a longer prescribed period.

  1. ANot less than the normal rate of wages
  2. BNot less than one and a half times the normal rate
  3. CNot less than twice the normal rate of wagesCorrect
  4. DNot less than three times the normal rate

Explanation

Section 14 provides that overtime for every hour or part of an hour worked beyond the normal working day must be paid at a rate not less than twice the normal rate of wages. One and a half times is a distractor from other regimes and is below the Code's floor.

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