LUCKNOW: November 23, 2025 — The Uttar Pradesh government has issued clarity on wage compensation for the private sector workforce, reiterating that the legal requirement for overtime pay remains robustly fixed at double the ordinary rate of wages. This stance provides financial security for millions of workers as the state continues to pursue ambitious industrial growth and modernizes its labour regulations.
The directive comes as the state adapts to amendments within the existing Factories Act, 1948 and prepares for the phased implementation of the central Code on Wages, 2019, which seeks to bring nationwide uniformity to labour standards.
The Legal Foundation: Rules for Work and Pay
The compensation structure for private employees in UP is primarily governed by the principle that work exceeding standard hours must receive premium pay.
1. The Overtime Calculation Standard
The core principle remains unchanged by recent policy discussions:
- Normal Hours: The standard working day is fixed at 9 hours, or a maximum of 48 hours per week.
- The Overtime Trigger: Any work performed by an employee beyond these established limits legally qualifies as overtime.
- Compensation Mandate: The law mandates that compensation for these extra hours must be at a rate that is twice the ordinary hourly wage (double the rate). This is a non-negotiable floor for overtime payment across the state.
2. Adaptation to New Codes and Flexibility
While the state has aimed to boost manufacturing and business efficiency through flexible scheduling, these measures have not compromised the financial safety net for workers:
- Temporary Working Hour Increases: During periods like the COVID-19 pandemic, the state briefly allowed factories to extend daily working hours up to 12 hours. However, all hours worked between the 9th and the 12th hour were legally required to be paid at the mandated double overtime rate.
- The Code on Wages, 2019 Impact: As the state notifies rules under the new central Code, the structural framework may see changes, potentially allowing for a 4-day, 12-hour work week option. Critically, these changes do not alter the fact that the double rate must be applied to any work hours designated as overtime under the new schedule.
Enhanced Protections and Compliance
The UP Labour Department is emphasizing strict compliance to ensure the economic welfare of its massive private workforce.
- Maximum Overtime Limit: Under specific regulations, the maximum limit for overtime work permitted has been increased for certain establishments, potentially extending to 144 hours in a quarter, particularly during peak demand. This provides industry flexibility while requiring substantial premium compensation for the extra effort.
- Mandatory Record Keeping: All private sector establishments are strictly required to maintain detailed, written registers and electronic records documenting every hour of overtime worked. This ensures accountability and facilitates the Labour Department’s inspections to prevent wage theft.
- Night Shift Safety and Pay: Directives that permit women workers to engage in night shifts (7 PM to 6 AM) are accompanied by a strict provision for double wages during those hours, along with mandatory safety measures and reliable transport facilities, reinforcing both equitable pay and security.
Worker Recourse
The law provides clear recourse for workers who are denied their legal overtime wages. Any employee can register a formal complaint with their respective Zila Labour Commissioner (District Labour Commissioner). The department is tasked with conducting immediate inspections and ensuring the employer complies with the statutory double-rate payment.
The state government views the strict enforcement of the double-pay mandate as essential to balancing the needs of industry acceleration with the goal of protecting the dignity and financial rights of the workforce, ensuring the state’s economic growth is both robust and inclusive.