Sections 27 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 27 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) says overtime work must be paid at twice the rate of wages. Section 28 deals with shifts that run beyond midnight and tells you how to count "the day" and the weekly holiday for such a worker.
A worker who works beyond the hours fixed by the appropriate Government in a day or a week must be paid twice the rate of wages for the overtime, and the overtime is counted on a daily or weekly basis, whichever is more favourable to the worker (section 27). The employer can require overtime only with the worker's consent. For a shift extending beyond midnight, the day runs for 24 hours from when the shift ends and hours after midnight count in the previous day (section 28).
Section 27 at a glance
| Part | What it says |
|---|---|
| Main para | Wages at twice the rate for overtime where a worker works more than the hours prescribed by the appropriate Government in a day or week |
| Calculation | Overtime is calculated on a daily basis or weekly basis, whichever is more favourable to the worker |
| First proviso | A worker can be required to work overtime only with the worker's consent |
| Second proviso | The appropriate Government may prescribe the total number of hours of overtime |
The section itself does not fix the number of hours after which overtime starts. It leaves that to the appropriate Government. Payroll teams that need to check their overtime rules against the Code can use our payroll compliance audit service to see which hours limits apply to them.
Who decides the hours
Where the Central Government is the appropriate Government, the Central Rules, 2026 answer the question. Where a State Government is the appropriate Government, read the State's own OSH rules. The daily and weekly hours that work in practice are set out in section 25 on daily and weekly working hours.
What Rule 69 of the Central Rules adds
Rule 69 of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) fills in the numbers:
- Trigger. A worker who works for more than eight hours in any day as a daily wager, or a worker other than a daily wager who works for more than forty-eight hours in any week, is entitled to twice the rate of wages for that overtime, paid at the end of each wage period.
- Fractions of an hour (rule 69(2)). A fraction of an hour between 15 and 30 minutes counts as thirty minutes; a fraction of more than thirty minutes is rounded and counted as an hour. The rule does not speak of fractions below 15 minutes.
- Monthly-paid workers (rule 69(3)). The daily wage is 1/26th of the monthly wages; for other workers it is the daily wages or earnings.
- Dock, mine and building or construction work (rule 69(4)). The hours in Rule 64 may be exceeded for listed work such as urgent repairs, preparatory or complementary work, work that for technical reasons must be carried on continuously, loading or unloading of railway wagons, lorries, trucks or ships, exceptional press of work, and work notified by the Central Government as work of national importance.
- Cap. As printed, the first proviso says no worker shall be allowed to work overtime exceeding 144 hours in any quarter of a year. The second proviso repeats that overtime wages are paid as per section 27 at the end of each wage period.
For the rule-by-rule treatment, see Rule 69 on wages for overtime.
Section 28: shifts that extend beyond midnight
Where a worker works a shift that extends beyond midnight:
- (a) for the purposes of section 26, a weekly holiday for a whole day means twenty-four consecutive hours beginning when the shift ends; and
- (b) "the following day" for that worker is the 24-hour period beginning when the shift ends, and the hours worked after midnight count in the previous day.
The effect is that a night-shift worker is not treated as having worked on two calendar days. The hours after midnight belong to the day on which the shift began, which matters for the daily hours limit, for overtime counted on a daily basis, and for the weekly holiday under section 26.
Practical points for payroll
- Get consent on record. The proviso makes consent a condition of requiring overtime. Keep it in writing or in the attendance system.
- Pick the more favourable basis. Compute overtime both daily and weekly and pay whichever gives the worker more, as section 27 directs.
- Apply the rounding rule. Under Rule 69(2), 20 minutes of overtime counts as 30 minutes and 40 minutes counts as an hour.
- Use 1/26th for monthly wages. A worker paid Rs 26,000 a month has a daily wage of Rs 1,000 for this purpose under Rule 69(3).
- Track the quarter. Keep a running total of overtime per worker so the 144-hour cap is visible before it is crossed.
- Shift rosters. Tag each post-midnight hour to the day the shift began before you total daily hours.
Example. A monthly-paid worker in a factory is asked to stay on for extra time on a few days. Each day's overtime is paid at twice the rate, rounded under Rule 69(2), at the end of the wage period. If the worker refuses to do the extra hours, the proviso to section 27 means the employer cannot require them.
For the old-law comparison on double-rate overtime, see our post on overtime wages at the double rate in factories.
Need help with overtime and shift pay?
Overtime errors usually repeat every month and surface in an inspection or a wage claim. Our payroll compliance audit team can test your overtime calculation, consent records and shift rosters against section 27, section 28 and Rule 69.
Key takeaways
- Overtime is paid at twice the rate of wages (section 27).
- Overtime is computed daily or weekly, whichever is more favourable to the worker.
- Consent of the worker is required to make the worker work overtime.
- Rule 69 (Central Rules): over 8 hours a day for daily wagers, over 48 hours a week for others; rounding at 30 minutes; 1/26th for monthly wages; 144 hours per quarter cap.
- A shift past midnight: the 24-hour day starts when the shift ends; hours after midnight count in the previous day (section 28).
Read next
- Section 26: weekly and compensatory holidays
- Sections 29 and 30: overlapping shifts and double employment
- Rule 69: wages for overtime
- Overtime wages at the double rate in factories
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.