(MENAFN- KNN India) New Delhi, Oct 9 (KNN) Industrial associations from Ludhiana have requested the central government to revise India's overtime payment laws to bring them in line with international labour standards.

They argue that the current policy puts Indian manufacturers at a competitive disadvantage compared to global peers.

A delegation led by the Chamber of Industrial and Commercial Undertakings (CICU) met Vandana Gurnani, Secretary, Ministry of Labour and Employment, urging amendments to Section 59 of the Factories Act, 1948, reported Indian Express.

Presently, Indian law mandates double wages (200%) for overtime work. The industry body has proposed reducing this rate to 150%, in line with the International Labour Organization (ILO) recommendations and the practices followed in other countries.

CICU President Upkar Singh Ahuja stated that the 200% overtime rate is significantly higher than those in nations such as China, Vietnam, Japan, and the US, where it generally ranges between 125% and 150%.

He added that this high rate increases operational costs, especially in labour-intensive sectors like textiles, apparel, and leather, which depend heavily on overtime during peak seasons.

The delegation also cited ILO Conventions No. 1 and No. 30, which suggest a minimum overtime rate of 125% of normal wages.

Industry representatives believe aligning with these global benchmarks would make Indian industries more competitive, promote compliance, and reduce informal employment practices.

The Labour Ministry has reportedly responded positively to the proposal, assuring the delegation that it will review the matter to balance worker welfare with industrial sustainability.

(KNN Bureau)

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