Working Hours and Overtime in Karnataka

Working hours and overtime pay in Karnataka are governed by the Karnataka Shops and Commercial Establishments Act, 1961 (Karnataka Act 8 of 1962) for shops, offices, IT/ITeS and service establishments, and by the Factories Act, 1948 for factories. The Factories (Karnataka Amendment) Act, 2023 (Karnataka Act 25 of 2023, in force 7 August 2023) introduced flexible hours for notified factory classes, and the four central Labour Codes became operational on 21 November 2025.

• Shops and commercial establishments — §7(1): 9 hours per day and 48 hours per week; the daily cap including overtime is 10 hours (except on stock-taking days). Overtime in any continuous 3-month period is capped at 50 hours under the second proviso to §7(1).
• Rest, spread-over and weekly off: §9 requires a rest interval of at least 1 hour after every 5 hours of continuous work. §10 caps the spread-over (first start to last finish, including rest) at 12 hours per day. §12 requires one full closed day every week.
• Women's night shifts — §25 (substituted 19 October 2020): Women may work night shifts on written consent subject to 16 safety conditions — GPS-tracked secure transport, security guards, separate rest and locker facilities, no first-pickup or last-drop, and employer-borne creche costs.
• Factories — §§51, 54, 55, 56: 48-hour weekly cap, 9-hour standard day, rest after 5 hours, spread-over up to 10.5 hours. Under the Factories (Karnataka Amendment) Act, 2023, notified classes may work up to 12 hours/day with a 12-hour spread-over on written consent (48-hour weekly cap preserved). The quarterly overtime cap was raised from 75 to 144 hours under §65(3)(iv), with written consent required under new §65(3)(v).
• Women in factories — §66(1)(b) with 2023 proviso: Women may work between 7 p.m. and 6 a.m. on written consent, subject to 16 safety conditions including at least one-third women supervisors on the night shift and a 12-hour gap between shifts.
• Overtime pay rate — §8 S&E Act and §59 Factories Act: Twice the normal/ordinary rate. "Normal wages" under §8(2) S&E Act means basic plus allowances plus the cash equivalent of any concessional food-grain advantage, excluding bonus. Factories Act §59(2) similarly includes allowances but excludes bonus and overtime wages; §59(3) specifies piece-rate calculation.
• Overtime trigger under amended Karnataka §59: 6-day week — work above 9 hrs/day or 48 hrs/week; 5-day week — above 10 hrs/day or 48 hrs/week; 4-day week — above 11.5 hrs/day; any work on paid holidays attracts overtime.
• Who is excluded: §3(1) S&E Act excludes managers (§3(1)(h)), inherently intermittent roles such as drivers, caretakers, watch-and-ward, canvassers (§3(1)(i)), and preparatory or complementary work including despatch clerks (§3(1)(j)). Under Factories Act §2(l), "worker" excludes mainly managerial or administrative staff and supervisory employees earning above ₹10,000/month.
• IT/ITeS: Exempted from the Industrial Employment (Standing Orders) Act till 9 June 2029 (Notification LD 328 LET 2023 dated 10 June 2024). Hours of work under the S&E Act continue to apply; there is no blanket exemption from the 9-hour day or 48-hour week.
• Worked example: A Bengaluru retail employee on a 9-hour shift at ₹600/day earns ₹66.67/hour. Working 11 hours on a non-stock-taking day breaches the 10-hour §7(1) cap. 2 overtime hours at twice the rate = 2 × ₹66.67 × 2 = ₹266.68 extra, plus ₹600 regular = ₹866.68 for the day. Once the quarter's overtime reaches 50 hours, further overtime is prohibited regardless of consent.