New Labour Law: Under the new Labour Law of 2026, changes have been made to the rules regarding overtime. Consequently, you will now receive double your regular pay when working overtime. Let us explain what these new rules are and how they will be implemented.
New Labour Law: For working professionals across the country, working overtime is a common occurrence. Many individuals work overtime, yet they remain unaware of exactly how much compensation they are entitled to receive in return. However, under the new labour laws, employees have now found some relief. According to the new labour regulations, employees will now receive double their standard pay in exchange for performing extra work.
What is Overtime?
According to labour laws, if an employer requires an employee to work beyond their scheduled working hours, it is mandatory to provide them with additional compensation in the form of overtime pay. Previously, many companies failed to properly adhere to this rule, resulting in financial losses for their employees. Now, however, the government and the Labour Department have significantly tightened enforcement in this regard. Companies have been issued clear directives to maintain accurate records of overtime hours and to compensate employees strictly in accordance with the regulations. Violations of these rules may result in fines and other punitive actions.
Overtime Regulations
If you, too, work an additional one or two hours beyond your standard eight or nine-hour shift at your workplace, this is classified as overtime. According to these new overtime regulations:
If an individual works beyond the duration of their scheduled shift, they are guaranteed to receive overtime compensation.
The individual performing the overtime work will be paid a 'double wage.' This means that if you have worked one extra hour, you will receive the equivalent of two hours' salary as additional compensation.
Under the new regulations, no company is permitted to refuse to compensate an employee for working overtime or to withhold the extra payment due to them.
As per the new rules, this 'double wage' will be calculated based on your basic salary.
The Objective: To Create Employee Awareness
The primary objective of this new regulation is to raise awareness among employees regarding their rights. If employees are required to work beyond their scheduled hours, they may demand overtime pay. For this purpose, they can contact the company's HR department or the Department of Labor. The greatest benefit of this new rule will be that it ensures transparency within the workplace and prevents the exploitation of employees.