April 1 wage code doubles overtime pay, mandates employer tracking

Business Apr 22, 2026

Big update effective since April 1, 2026: the new wage code means if you work extra hours, you'll get double pay for overtime.
Employers now have to keep a close track of all the extra hours you put in, and even short overtimes (15-30 minutes) will count as one-half hour.
The standard workweek stays at 48 hours.

Basic pay at least half CTC

Your basic pay must be at least one-half of your CTC now, which could mean higher provident fund contributions but possibly a smaller take-home.
Blue-collar workers stand to benefit most from the double-pay rule, while white-collar folks may see less impact unless states roll out these changes.
Also, when you leave a job, all pending wages, including overtime, must be settled right away.