Section 27: Extra wages for overtime
Reviewed by Finin2min Editorial Desk · Last reviewed 6 September 2026
Section 27 — Governs extra wages for overtime and the rights, duties, powers or procedure expressly stated in this section. Key operative text: There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may…
All provisions were brought into force from 21 November 2025 under S.O. 5321(E), subject to the Central/State appropriate-Government split and provision-specific appointments/notifications.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
What you need to know
Section 27 of the Occupational Safety, Health and Working Conditions Code deals with extra wages for overtime. The compliance question is not only the multiplier: the employer must first determine the normal working-hour framework under the Code/rules, whether overtime has been validly required/allowed and consent conditions, and then calculate overtime at the statutory rate on the correct wage base.
Decision checklist
- Use the current Central/State rule applicable to the establishment and worker category.
- Capture worker consent where the legal framework requires it.
- Reconcile attendance, shift roster, overtime approval and wage register.
- Do not replace the statutory overtime entitlement with a flat internal allowance unless the law permits the result.
Worked situation
If an employee’s attendance system shows hours beyond the normal daily/weekly limit but payroll pays only a fixed “OT allowance”, the employer should test the actual Section 27 calculation and evidence rather than treating the allowance label as compliance.
Primary sources
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Use-date rule: apply the law, rate, form and portal version for the actual transaction, tax year or proceeding date. This page is a professional reference, not a substitute for fact-specific advice.
Finin2min analysis — what the section actually does
Operative clauses
- There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a daily basis or weekly basis, whichever is more favourable to such worker:
- Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work:
- Provided further that the appropriate Government may prescribe the total number of hours of overtime.
Provisos, explanations & qualifications
- Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work:
Thresholds and timelines in the text
- Extra wages for overtime.—There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a…
- Provided further that the appropriate Government may prescribe the total number of hours of overtime.
Actors expressly appearing in the text
Employer, Worker, Appropriate Government
Full statutory text — Section 27
27. Extra wages for overtime.—There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a daily basis or weekly basis, whichever is more favourable to such worker: Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work: Provided further that the appropriate Government may prescribe the total number of hours of overtime.
How to apply this provision
- Primary statutory test — There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a daily basis or weekly basis, whichever is more favourable to such worker:
- Additional operative limb — Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work:
- Qualification / exception to test — Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work:
- Numerical or timing control — Extra wages for overtime.—There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a…
- Central Rule mapping — 69. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Worker, Appropriate Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
A worker works beyond the normal hours prescribed for the establishment. First establish the applicable daily/weekly limit under the Code and Rules; then calculate the statutory overtime rate using the provision's stated multiplier and preserve attendance, overtime consent/approval and payroll evidence. Do not use an HR policy limit if the statutory/prescribed limit is different.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 27
What does Section 27 of the OSHWC Code cover?
Section 27 — Governs extra wages for overtime and the rights, duties, powers or procedure expressly stated in this section. Key operative text: There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may…
What is the main legal requirement or power in Section 27?
The first operative clause identified from the official text is: “There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a daily basis or weekly basis, whichever is more favourable to such worker:” Read it with the remaining subsections and any proviso below.
Does Section 27 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that a worker shall be required to work overtime by the employer subject to the consent of such worker for such work:”
What time limit, percentage or amount appears in Section 27?
The provision contains this numerical/time expression: “Extra wages for overtime.—There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where a worker works in an establishment or class of establishment for more than such hours of work in any day or in any week as may be prescribed by the appropriate Government and the period of overtime work shall be calculated on a…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 27?
The current concordance maps Section 27 to Central Rule(s) 69.
Is Section 27 currently operative?
All provisions were brought into force from 21 November 2025 under S.O. 5321(E), subject to the Central/State appropriate-Government split and provision-specific appointments/notifications.
Source & verification trail
Act: Occupational Safety, Health and Working Conditions Code, 2020 — official India Code PDF ↗
Central Rules: Occupational Safety, Health and Working Conditions (Central) Rules, 2026 — G.S.R. 345(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.