May 13, 2025

Working overtime? You should know this!

If you're working in Pakistan or India, public or private. Understanding labor laws isn't optional. From overtime pay to work-hour limits, here's what every professional and employer must know.

BG

If you’re a working man or a woman. Whether at a private or a public sector organization, you need to know your rights.

For any business, success is a two way road. Organization invest in growth and employees bring results. When both sides know the rules of the game, it get's interesting. This leads to a more sustainable workplace.

Labor laws aren't just for employers to follow. They provide a protection to the employees for which they need to be informed on. Our fellas know machine learning but they don't know labor law. So, whether an individual is planning to launch a venture or just want to step into the workforce, knowing their or their employees' rights would do good in every way.

Here comes the thing.

According to the law in Pakistan:

  • Standard working hours: 9/day (including a 1-hour break)
  • Maximum hours allowed including overtime: 56/week
  • Overtime pay rate: 2x your standard hourly rate
  • Working on a festival holiday: That’s 3x

Here’s a formula which you can use to calculate an overtime:

Overtime = (gross monthly salary x 2 x no. of overtime hours) / (working days in a month x working hours in a day)

If you're calculating for a public holiday, just swap 2 with 3. Now this is some good maths. The one I love, that pays.

For employees working on the weekends. Employees should be compensated as per the overtime rule, if the standard working hour limit is exceeded, i.e. 48 hours. Bearing in mind that the working hours per week should not exceed by 56 hours. An employee could also be compensated by providing a paid leave.

For India:

  • Standard working hours: 48/week
  • Maximum hours allowed including overtime: 60/week
  • Overtime pay rate: 2x your standard hourly rate.

If an employee is needed to work on Sundays, they'll be either compensated by a workday off on a working day or paid overtime.

Finally for the employers reading this.

  • Respecting work-life balance pays off.
  • A happy employee makes a happy employer.
  • Labor law compliance isn’t just a legal necessity it's a smart business move.

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