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      Question

      Under the Code on Wages, 2019, if a worker works for

      more than the normal working hours in any day or week, the rate at which overtime wages must be paid is:
      A Equal to the normal rate of wages applicable to the worker Correct Answer Incorrect Answer
      B One and a half times the normal rate of wages Correct Answer Incorrect Answer
      C Twice the normal rate of wages Correct Answer Incorrect Answer
      D Twice the normal rate of wages, but only if the overtime exceeds 5 hours in a single day Correct Answer Incorrect Answer

      Solution

      Explanation:  Section 14 of the Code on Wages, 2019 provides that where a worker works on any day or week beyond the normal working hours prescribed under the Code or under any other law in force, the employer shall pay the worker overtime wages at twice the normal rate of wages. This position is consistent with the rule previously existing under the Minimum Wages Act, 1948, which the Code on Wages consolidates. The phrase "normal rate of wages" for the purpose of overtime calculation means the basic wage plus such allowances as the worker is for the time being entitled to, but does not include bonus or overtime allowance itself. Option (A) is incorrect because equal-rate payment would defeat the very purpose of overtime protection, which is to financially discourage excessive extraction of work from employees. Option (B) is incorrect as it reflects the overtime rate under some other jurisdictions and international standards but is not the rate prescribed under the Code on Wages, 2019. Option (D) is incorrect because the Code does not impose any minimum threshold of hours before the double-rate obligation kicks in any work beyond normal hours attracts overtime wages at twice the rate.

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