Archive · 19 Dec 2025
States Gain Flexibility in Overtime Hours Under New Labour Codes
The Indian government has given states more flexibility to increase overtime hours for workers.
The new labour codes allow up to 125 hours of overtime per quarter, which some states have extended to 144 hours.
Workers must agree to overtime, and they get paid twice their normal wage for it.
The new laws also reduce criminal penalties for businesses and simplify compliance.
There are new benefits for workers, including minimum wages, health check-ups, and social security.
A portal called e-Shram helps unorganised workers, including gig workers, access these benefits.
The goal is to make labour laws fairer and easier to follow.
State governments can increase overtime hours from 75 to 125 per quarter, with some states extending it to 144 hours.
Overtime requires employee consent and is compensated at twice the normal wage rate.
The new labour codes reduce criminal liability provisions from 87 to 22, with 16 being compoundable.
The codes simplify compliance by reducing multiple registrations, licenses, returns, and registers.
Workers' benefits include minimum wages, appointment letters, welfare measures, social security, and health check-ups.
The e-Shram portal, with over 31 crore registered workers, links unorganised workers to government welfare schemes.
Social security eligibility requires 90 days of work with one aggregator or 120 days with multiple aggregators in a year.
- Who
- State governments and workers in India
- What
- Flexibility to increase overtime hours and other labour law reforms
- When
- Announced on December 19, 2025
- Where
- India
- Why
- To balance worker welfare and reduce compliance burden on industry
- Overtime Limit
- 125 hours per quarter (extendable to 144 hours by some states)
- Overtime Compensation
- Twice the normal wage rate
- Criminal Liability Provisions
- Reduced from 87 to 22, with 16 being compoundable
- Labour Laws Simplified
- 29 laws replaced by 4 comprehensive labour codes
- Compliance Simplification
- Single registration, one license, one return, and 8 registers
- Workers' Benefits
- Minimum wages, appointment letters, welfare measures, social security, and health check-ups
- e-Shram Portal
- National database for unorganised workers with over 31 crore registered workers
- Social Security Eligibility
- 90 days with one aggregator or 120 days with multiple aggregators in a year
