Section 14 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.
Section 14 of the Code on Wages, 2019 sets the pay for work beyond a normal working day: the employer must pay for every hour or part of an hour worked in excess at an overtime rate that is not less than twice the normal rate of wages. It applies to employees whose minimum rate is fixed by the hour, the day or a longer prescribed wage period.
Where an employee whose minimum rate of wages has been fixed under the Code by the hour, by the day or by a longer wage-period as may be prescribed works on any day in excess of the number of hours constituting a normal working day, the employer must pay for every hour or part of an hour so worked at the overtime rate, not less than twice the normal rate of wages (s.14). Under the Central Rules, the longer wage period is by the month (rule 9). The section does not set a cap on overtime hours or require the employee's consent in so many words.
What the section says
| Element | Text |
|---|---|
| Who | An employee whose minimum rate of wages has been fixed under the Code by the hour, by the day or by such a longer wage-period as may be prescribed |
| Trigger | Works on any day in excess of the number of hours constituting a normal working day |
| What the employer pays | For every hour or part of an hour so worked in excess, at the overtime rate |
| Floor on the rate | Not less than twice the normal rate of wages |
Four points follow.
- Daily trigger. The trigger is hours beyond a normal working day, measured day by day. The section does not average hours across a week. What a normal working day is comes from section 13 and the rules under it.
- Part of an hour counts. The employer pays "for every hour or part of an hour". The text does not say how a part of an hour is rounded. On a plain reading, a part of an hour is paid as an hour. Check the rules that apply to you for anything more specific.
- Twice the normal rate. The overtime rate is a floor, "not less than twice". An employer can pay more.
- Normal rate of wages. Under rule 2(1)(p) of the Central Rules, "normal rate of wage" means wage as defined under s.2(y). See the definition of wages. Note that s.2(y)(h) excludes any overtime allowance from "wages", so overtime pay does not feed back into the normal rate.
Employers with a mix of hourly, daily and monthly paid staff should check how each group's normal rate is built before computing overtime. Our payroll compliance audit service can recompute overtime for a payroll period and show the gap, if any.
"Longer wage period as may be prescribed"
Section 14 covers minimum rates fixed by the hour, by the day or by a longer wage period "as may be prescribed". For time work, section 6(4) allows rates by the hour, the day or the month. So the "longer wage period" in s.14 is the monthly basis, which the Central Rules confirm in rule 9: the longer wage period for the purposes of minimum rate of wages under section 14 shall be by the month.
What the Central Rules add. The Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) apply only where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own wage rules apply.
- Rule 9: the longer wage period for s.14 is by the month.
- Rule 8: the working hours of the categories of employees under s.13(2) may exceed the normal hours in rule 5, but their overtime shall be as per section 14.
- Rule 6(4): work on a rest day, with a substituted rest day, is paid at the overtime rate for the rest day worked; the proviso for certain six-day-week cases refers to an amount equal to the wages at the overtime rate, not less than twice the normal rate of wages.
See Rules 7 to 9.
How to compute overtime
- Find the normal rate per hour for the employee, consistent with the wage period (hourly, daily or monthly) used for fixing his minimum rate.
- Find the hours in excess of the normal working day on that day.
- Count every hour or part of an hour in excess.
- Multiply by the overtime rate (at least twice the normal rate).
Illustration (hypothetical figures). A day rate of Rs 400 is divided by eight to give Rs 50 an hour (the Central Rules' method in rule 3(2)). The overtime rate is at least 2 x Rs 50 = Rs 100 an hour. An employee works 2 hours 20 minutes beyond the normal day. Counting every hour or part of an hour, that is 3 hours. Overtime pay is at least 3 x Rs 100 = Rs 300 for the day, in addition to the day's normal wages. The rate is invented to show the arithmetic.
What the section does not say
| Question | Position in the text |
|---|---|
| Maximum overtime hours per day, week or quarter | Not stated in s.14 |
| Employee's consent | Not mentioned in s.14 |
| Weekly averaging of hours | Not provided; the trigger is hours worked on a day |
| Rounding of part hours | Not stated beyond "every hour or part of an hour" |
Limits on hours of work may be found in other laws, such as the Occupational Safety, Health and Working Conditions Code, 2020, which the Central Rules mention for the interval for rest. This article does not state those limits; see our guides on that Code.
For the old-law comparison, see our guide on overtime under the Minimum Wages Act: double rate.
Practical points. Record start, finish and breaks daily so the excess is provable, and keep an overtime register showing hours and rate.
Need help checking overtime payments?
Overtime errors usually come from the wrong base rate or from dropping part-hours. Our payroll compliance audit team can recompute overtime for sample months, check your base rate and tell you where payments fall short of the Code.
Key takeaways
- Overtime is payable for every hour or part of an hour worked beyond a normal working day.
- The rate is not less than twice the normal rate of wages.
- It applies to employees whose minimum rate is fixed by the hour, the day or a longer wage period; the Central Rules prescribe the month as the longer period.
- Overtime allowance is excluded from "wages" in s.2(y)(h), so the normal rate is computed without it.
- Section 14 contains no cap on overtime hours; check other laws and rules for limits.
Read next
- Section 13: hours of work for a normal working day
- Sections 15 and 16: mode of payment and wage period
- Rules 7 to 9 of the Central Rules: night shifts, special categories and longer wage period
- Overtime under the Minimum Wages Act: double rate
Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.