Telangana Allows 10-Hour Workdays to Boost Business

Manya Maheshwari

| 2025-07-07 | Business Stories

Telangana has taken a bold step by allowing commercial establishments to implement 10-hour workdays to boost its business environment. This policy was announced in early July 2025, and it aims to make it easier for businesses to operate flexibly while ensuring that workers’ rights are protected.

What Does the New Policy Say?

Daily Working Hours & Weekly Cap: Employees in commercial establishments (excluding shops) can now be scheduled for up to 10 hours per day but the total working hours for any employee cannot exceed 48 hours in a week.
Overtime Rules: If an employee works more than 48 hours in a week, they must be paid overtime wages as required by law.
Rest Breaks: Anyone working more than six hours in a day must get a 30-minute rest break.
Maximum Daily Limit: Even with overtime, no employee can be made to work more than 12 hours in a single day.
Quarterly Overtime Cap: Overtime is limited to 144 hours per quarter (three months).
Enforcement: If companies violate these rules, the government can revoke their permission to operate under the new schedule without prior notice.

Why Is Telangana Making This Change?

The state’s leadership says the reason behind this move is :

Increase business flexibility: Companies can better manage shifts and workloads, especially in sectors like IT, hospitality, and manufacturing.
Improve ease of doing business: By aligning with national trends and neighboring states, Telangana hopes to attract more investment and create jobs.
Balance labor rights: The policy keeps in place key protections for workers, such as limits on total hours and mandatory rest periods.

How Does This Compare with Other States?

Telangana is not alone in rethinking work hours:

Andhra Pradesh recently increased daily working hours from nine to ten.
Tamil Nadu amended its laws to allow up to 12-hour shifts, but still capped weekly hours at 48, giving workers the option of longer days and more days off.

Safeguards for Employees

The government has emphasized that the new rules are not a license for exploitation. Key safeguards include:

Strict weekly and daily limits on working hours.
Mandatory overtime pay for extra work.
Required rest breaks to protect health and well-being.
Penalties for violations, including revocation of exemptions for non-compliant companies1 4 5.

What Are the Critics Saying?

While the policy has been welcomed by many businesses, some labor rights advocates have raised concerns:

Risk of Exploitation: Critics worry that longer shifts could lead to overwork, especially if companies fail to record hours or avoid paying overtime.
Implementation Challenges: Ensuring compliance and protecting workers’ rights will depend on effective monitoring and enforcement by the government4.

The Bigger Picture: Telangana’s Economic Vision

This policy is part of a broader push by the Telangana government to:

Attract investment by making the state more business-friendly.
Support industrial growth and job creation.
Maintain a balance between operational flexibility for companies and welfare for workers.

Chief Minister Revanth Reddy and his team have repeatedly stated that Telangana is open for business and committed to supporting both profitability and worker welfare. The state’s manufacturing sector, for example, has outperformed the national average in recent years, and new policies are being rolled out to support clean manufacturing, women entrepreneurs, and digital governance.

When Does the Policy Take Effect?

The new rules will come into effect once the official government notification is published, which is expected to be on July 8, 2025.

Key Points at a Glance

Policy Feature	Details
Daily Work Hours	Up to 10 hours
Weekly Work Hours	Maximum 48 hours
Overtime Pay	Required for work beyond 48 hours/week
Rest Break	30 minutes after 6 hours of work
Max Daily Limit (with overtime)	12 hours
Overtime Cap	144 hours per quarter
Enforcement	Violations can lead to loss of exemption