Labour in India - International Comparison of Indian Labor Laws

International Comparison of Indian Labor Laws

The table below contrasts the labor laws in India to those in China and United States, as of 2011.

Relative regulations and rigidity in labor laws
Practice required by law India China United States
Minimum wage (US$/month) 90 (INR 5000) 182.5 1242.6
Standard work day 9 hours 8 hours 8 hours
Minimum rest while at work 30 minutes per 5 hour None None
Maximum overtime limit 200 hours per year 1 hour per day None
Premium pay for overtime 100% 50% 50%
Dismissal due to redundancy allowed? Yes, if approved by government Yes, without approval of government Yes, without approval of government
Government approval required for 1 person dismissal Yes No No
Government approval required for 9 person dismissal Yes No No
Government approval for redundancy dismissal granted Rarely Not applicable Not applicable
Dismissal priority rules regulated Yes Yes No
Severance pay for redundancy dismissal
of employee with 1 year tenure		 2.1 week salary 4.3 week salary None
Severance pay for redundancy dismissal
of employee with 5 year tenure		 10.7 week salary 21.7 week salary None

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