What are Working Hours?
Working hours refer to the total time an employee spends performing duties assigned by the employer during a workday. In India, working hours are regulated by multiple labour laws, including the Factories Act 1948, the Shops and Establishments Act (state-specific), and the Code on Wages 2019.
There is an important distinction between gross working hours and net working hours. Gross hours include the entire time from clock-in to clock-out, while net hours exclude breaks such as lunch and rest intervals. For payroll purposes, net working hours are used to calculate wages and determine overtime eligibility.
- Factories Act 1948: Limits daily working hours to 9 hours and weekly hours to 48 hours for factory workers. Any work beyond these limits qualifies as overtime
- Shops and Establishments Act: Varies by state. Most states limit daily hours to 8 or 9 hours and weekly hours to 45 to 48 hours for retail, commercial, and service establishments
- Code on Wages 2019: Consolidates four central labour laws into one. It defines working hours, overtime provisions, and wage calculation methods for all types of establishments
- Spread-over limit: The total time between the start and end of a workday, including breaks, should not exceed 10.5 hours under the Factories Act