News & Insights

New Labour Code: White-collar employees to receive overtime pay.

Published: December 10, 2020
Author: Manali bhanushali

Professionals who put in extra hours at work would be eligible for overtime once the Code on Wages, 2019, comes into force. The Code widens the purview of overtime pay to include all employees, including managerial staff. The code states that the compensation for overtime should be at least twice that of the employees’ regular pay, the Economic Times reported. At present, the white-collar workers are not in the purview of overtime wage payment. The Code on Wages also has provisions for minimum and timely payment of wages to all the workers in India. It consolidates four laws relating to wages and bonus, namely – Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976.

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