All IT Employees, Managers Will Get Double Salary As Overtime Pay Soon (New Labor Laws)

By Malvika Gurung Last updated Dec 8, 2020

As per new Labour law, all white collar workers, which includes IT employees, to receive increased overtime pay.

The Labour law code, as documented under the Code of Wages, 2019 brings positive news for all the white collar workers, which include IT employees and the managerial staff too.

Due to the Work-from-Home model, many professionals have been working overtime and putting in extra hours, than already required.

Among the different codes stated by the new Labour law, two inherently important ones include managerial staff under the scope of overtime pay, besides other employees and an increase in the compensation for overtime to be at least twice the wage of the employee.

Let’s learn more about this and the chances of the new laws getting implemented in modern offices.

Two Highly Appreciated Sections of the New Labour Code

According to the Code on Wages 2019,

Managerial staff, too shall be brought under the purview of overtime pay, along with all other employees, and
The compensation for overtime should be raised to at least twice that of what the employee gets paid regularly.

These two codes are just parts of the new Labour law.

Currently, there are several laws which present the term ‘wages’ under diverse and different forms of definition, when it comes to overtime pay.

All these diverse understandings are known to be streamlined under the new codes.

“The white-collar workers so far had not been in the purview of overtime wage payment and the government is trying to rectify that with these codes.”, says the CEO of Avantis Regtech.

New Codes to Increase Expenses for Companies

While the new codes are welcomed by the employees, companies are looking at it as an increased expense and compliance burdens on their pockets.

For starters, companies will have to come up with new frameworks, through which overtime parameters could be monitored.

Additionally, they will also need to monitor the activities of each employee, in the sense that none of them logs in for more than a stipulated amount (number) of overtime hours in a day, week or quarter, as notified under the new labour code.

Needless to add, these codes are not yet implemented. We will keep you updated on the same.