Government Clarifies Wage Code Does Not Guarantee Double Overtime Pay

There is a new law in India called the Code on Wages that says workers who put in extra hours should be paid at least twice their normal rate.

Many Central government employees wondered whether this meant automatic double pay for overtime work.

The government was asked about this in the Lok Sabha on 5 August 2026.

The government explained that the new law does not automatically change overtime allowance for Central government employees.

For eligible non-gazetted employees, overtime pay still follows older government orders and Pay Commission recommendations.

The hourly rates were set back in 1991 through an official memorandum.

The government says overtime should generally be avoided and only be worked when a proper authority allows it.

Employees in gazetted positions are not covered and no change was announced for them.

So the wage code's double-pay rule is a general standard, not a guarantee of doubled pay for every government employee.