Section 14 Overtime Wages and Section 15 Mode of Payment under the Code on Wages, 2019

Sections 14 and 15 of the Code on Wages, 2019 deal with two practical wage protections: the rate payable when an eligible employee works beyond the normal working day, and the legally recognised modes by which wages may be paid.

Section 14: Wages for Overtime Work

What Section 14 means

Section 14 creates a minimum statutory overtime rate. Once the provision applies, overtime cannot be paid at a rate lower than twice the normal rate of wages. The entitlement is linked to an employee whose minimum rate of wages has been fixed under the Code.

The Ministry of Labour and Employment has also clarified in its labour-code FAQs that an employee, including a worker, whose minimum rate of wages is fixed under the Code is eligible for overtime. This makes the statutory test important when determining whether a particular employee is covered.

Normal working day under the 2026 Central Rules

For employments for which the Central Government is the appropriate Government, Rule 5 of the Code on Wages (Central) Rules, 2026 provides that a normal working day is eight hours where the wage period is daily. Where the wage period is other than daily, working hours are to be fixed so that total weekly working hours do not exceed forty-eight hours.

Rule 9 further prescribes the month as the longer wage period for the purposes of Section 14. Rule 8 states that even for specified categories whose working hours may exceed the normal hours under Section 13(2), overtime is governed by Section 14.

Overtime on a weekly rest day

Rule 6 of the 2026 Central Rules deals with the weekly day of rest. Where its conditions apply and an employee works on the rest day with a substituted rest day, the Rules provide for payment at the overtime rate for work on the rest day, subject to the detailed provisions of Rule 6. The Rules also preserve more favourable terms available under another law, award, agreement or contract of service.

Meaning of "normal rate of wage"

The Code on Wages (Central) Rules, 2026 define "normal rate of wage" by reference to the definition of "wages" in Section 2(y) of the Code. Section 2(y), in broad terms, defines wages as remuneration expressed in money or capable of being so expressed that would be payable if the terms of employment were fulfilled, and it identifies specified inclusions and exclusions. The statutory definition and its provisos should be checked when calculating wage components for a particular case.

Section 15: Mode of Payment of Wages

Practical effect of Section 15

Section 15 recognises both traditional and non-cash payment methods. However, the general choice of payment mode is subject to any notification issued by the appropriate Government requiring specified establishments to use cheque or bank-account credit.

The 2026 Central Rules also recognise electronic administration of wage records. Among other compliance requirements, the Rules prescribe records relating to wages and overtime and provide for wage slips to be issued electronically or in physical form.

Key Points at a Glance

• Sections 14 and 15 are in force from 21 November 2025.
• Section 14 requires overtime at not less than twice the normal rate of wages where its statutory conditions are met.
• Under the Central Rules, a normal working day for a daily wage period is eight hours, while other wage periods are subject to a forty-eight-hour weekly ceiling for fixing normal hours.
• Section 15 permits cash, cheque, bank credit and electronic payment, subject to notified mandatory payment modes for specified establishments.
• Applicable Central or State rules and notifications should be checked according to which Government is the appropriate Government for the employment concerned.

Official Legal Resources

Last reviewed: 16 September 2026. This page is a general legal information resource and should be read with the Code, applicable rules and notifications.