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Compliance 8 min10 February 2026
Overtime Tracking & Compliance in India: What You Need to Know
Legal Framework
Overtime in India is primarily governed by the Factories Act (1948) and Shops & Establishments Acts (state-specific).Key Rules
Working Hours
•Maximum 48 hours per week / 9 hours per day (Factories Act)
•Overtime beyond this must be compensated at 2x the ordinary rate
Overtime Limits
•Maximum 50 hours of overtime per quarter (Factories Act)
•Some states have different limits under their Shops & Establishments Act
Record Keeping
•Employers must maintain overtime registers
•Records must be preserved for at least 3 years
•Failure to maintain records can result in penalties
How to Track Properly
→Automatic calculation — Let your HRMS compute overtime from actual punch times
→Shift-aware — Different shifts may have different overtime thresholds
→Approval workflow — Pre-approve overtime to control costs
→Reports — Generate overtime reports by employee, department, or period
PiYu HQ's Approach
Our attendance system automatically calculates overtime based on your configured shift timings and grace periods. Reports are export-ready for compliance audits.