Rule 69 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 69 turns the overtime principle in section 27 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) into numbers. Overtime is paid at twice the rate of wages, is counted in a particular way, uses a daily wage fixed at one twenty-sixth of the monthly wage for monthly-paid workers, and is capped at 144 hours in a quarter.
A worker who works more than eight hours in a day (daily wager) or more than forty-eight hours in a week (other workers) gets twice the rate of wages for that overtime, paid at the end of each wage period. Fractions of an hour are rounded under rule 69(2). A monthly wage is converted at 1/26th a day. For dock, mine and construction work, hours may exceed the limit in listed circumstances, with a cap of 144 hours of overtime in a quarter.
The Code behind the rule
Section 27 of the OSH Code says wages at twice the rate shall be paid for overtime where a worker works more than such hours in a day or week as the appropriate Government prescribes. The period of overtime is to be calculated on a daily or weekly basis, whichever is more favourable to the worker. A worker may be required to work overtime only with consent. The appropriate Government may prescribe the total number of hours of overtime. Our sections 27 and 28 explainer covers the section.
The Central Rules apply where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own OSH rules apply and may set different thresholds and caps. A payroll compliance audit can test whether your overtime calculation uses the right set.
Rule 69(1): when overtime arises
| Worker type | Overtime arises when | Payment |
|---|---|---|
| Daily wager | Works more than eight hours in any day | Twice the rate of wages |
| Worker other than a daily wager | Works more than forty-eight hours in any week | Twice the rate of wages |
The overtime wage must be paid "at the end of each wage period". Rule 64 sets the forty-eight-hour weekly limit; see our rule 64 article. The rule ties the daily test to daily wagers and the weekly test to other workers. Section 27 of the Code, however, says the overtime period is calculated on a daily or weekly basis, "whichever is more favourable to such worker". If a monthly-paid worker works ten hours on a day but stays within forty-eight hours for the week, read the Code and the rule together, and seek advice before leaving the daily excess unpaid.
Rule 69(2): counting the fraction
"In calculating overtime on any day, a fraction of an hour between 15 to 30 minutes shall be counted as thirty minutes and in case of more than thirty minutes it shall be rounded and shall be counted as an hour on actual basis."
The rule is short on the detail. On its words: a fraction between fifteen and thirty minutes counts as thirty minutes; a fraction of more than thirty minutes counts as a full hour. The rule says nothing about a fraction under fifteen minutes. Do not assume it is paid or ignored; the text does not say. Keep your overtime policy consistent and read it against the Rules for your sector.
Rule 69(3): the daily rate
For a worker paid by the month, "the daily wages shall be 1/26th of their monthly wages". For any other worker, the daily wages or earnings are the actual daily wages or earnings.
A simple illustration. Suppose a monthly wage of Rs 26,000. The daily wage is Rs 1,000 under the 1/26th formula. The hourly figure depends on the hours in a normal day, which the rule does not state. The Code's section 25(1)(a) fixes the day at eight hours, so a practical working is Rs 125 an hour and Rs 250 at the double rate. "Wages" here means wages as the Code defines the term, which is its own definition; see our wages definition article.
Rule 69(4): where hours may exceed the limit
For dock, mine and building or other construction work, the hours in rule 64 "may exceed" in these works and circumstances:
- urgent repairs;
- preparatory or complementary work;
- work so intermittent that the intervals of not working while on duty ordinarily amount to more than the intervals for rest;
- work that for technical reasons must be carried on continuously;
- making or supplying articles of prime necessity that must be made or supplied every day;
- a process that cannot be carried on except during fixed seasons;
- a process that cannot be carried on except at times dependent on the irregular action of natural forces;
- work in engine-rooms or boiler-houses or attending to power-plant or transmission machinery;
- a process on account of the break-down of machinery;
- loading or unloading of railway wagons, lorries, trucks or ships;
- exceptional press of work; and
- work notified by the Central Government in the Official Gazette as work of national importance.
Two provisos follow. First, no worker shall be allowed to work overtime exceeding 144 hours in any quarter of a year. Second, for overtime, the worker shall be paid wages as per section 27 of the Code at the end of each wage period. So the exceptions allow longer hours, but the double rate and the quarterly cap still apply.
The list is drawn for dock, mine and construction work only. The rule does not say that the same list applies to factories or offices, so do not use it there.
Consent, records and payslips
Section 27 requires the worker's consent for overtime. Keep a written or electronic record. Overtime hours and payments must appear in the wages, overtime and deductions register and the wage slip under rule 72; see our rule 72 article.
Practical examples
Example 1. A daily wager earns Rs 800 a day. She works ten hours on a day. Overtime is two hours. At twice the rate, her overtime is computed on Rs 100 an hour x 2 = Rs 200 an hour, so Rs 400, paid at the end of the wage period. The example assumes an eight-hour day.
Example 2. A monthly-paid fitter works 53 hours in a week. The weekly excess is five hours. The daily wage is 1/26th of the monthly wage, and the overtime is paid at twice the rate. The Code also requires the more favourable of the daily and weekly calculations.
Example 3. A port operator needs a crew for urgent repairs after a breakdown. Hours may exceed the limit under rule 69(4)(a), but any worker who has already done 144 hours of overtime in the quarter cannot be asked to do more.
Compliance checklist
- Record hours daily and compare to eight hours a day and forty-eight a week.
- Get consent for overtime and keep the record.
- Round fractions per rule 69(2) and use the 1/26th daily wage for monthly pay.
- Track the quarterly total against 144 hours where rule 69(4) is used.
- Pay overtime at the end of the wage period and show it on the wage slip.
Need help with overtime calculations?
Overtime errors usually sit in the rounding, the daily rate and the quarterly cap. Our team can run a sample of your payroll against the Code and the Central Rules. Start with our payroll compliance audit service.
Key takeaways
- Overtime is paid at twice the rate of wages.
- Daily wagers: more than eight hours a day; other workers: more than forty-eight hours a week.
- Fractions: 15 to 30 minutes count as thirty minutes; more than thirty count as an hour.
- Monthly wages convert at 1/26th for the daily wage.
- Dock, mine and construction work have listed exceptions, with a 144-hour quarterly cap.
- Section 27 requires the worker's consent.
Read next
- Sections 27 and 28 of the OSH Code: extra wages for overtime and night shifts
- Rule 64: working hours
- Rules 67 and 68: weekly holiday and compensatory holidays
- Overtime wages at double rate under the Factories Act
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.