90-hour work week? No, it will not lead to higher productivity

The current Indian labour laws mandate that work hours should not exceed nine hours per day, including a rest period of half an hour. (Image: Pixabay)
The current Indian labour laws mandate that work hours should not exceed nine hours per day, including a rest period of half an hour. (Image: Pixabay)

Summary

Recent remarks by corporate honchos on increasing work hours reflect a larger trend of companies that seem to prioritize quantity over quality of output. But are long work hours really needed for nation-building? 

A viral video featuring Larsen & Toubro Chairman S.N. Subrahmanyan urging employees to consider a 90-hour work week and work on Sundays has sparked widespread discussion, reigniting the debate on work-life balance.

Not everyone is on board with the idea: Mahindra Group Chairman Anand Mahindra switched the focus to productivity, saying it is the output, not hours, that matters. A Mint analysis of labour-related data shows that Indians are working long hours for little pay, while labour productivity remains low.

The current Indian labour laws mandate that work hours should not exceed nine hours per day, including a rest period of half an hour. Employees are also entitled to at least one day of weekly off.

Also read: Beware: 90-hour workweek is nothing; companies are now hiring detectives to check if you’re unwell during sick leaves

Nonetheless, data shows that an average Indian employee clocks 46.7 hours per week, according to data from the International Labour Organization (ILO). India is among the most ‘overworked’ nations with 51% of the Indian workforce logging over 49 hours weekly, the highest among 170 countries analysed. Against this, the minimum monthly earnings of an Indian employee is at the lower end of the spectrum at $220, showed the ILO data.

Has the hard work translated into better output? Not necessarily. Labour productivity—the hourly output of a country's economy—is just $8, the lowest among developing nations, according to the ILO.

The Reserve Bank of India’s KLEMS database, released last year, shows that six out of the 10 biggest sectors (by gross output) saw their average labour productivity growth slow down in the last five years.

Diminishing returns

Traditionally, the ‘grind’ or the ‘hustle’ culture has been glorified–in India as part of nation-building–but research shows long work hours may not lead to higher productivity. 

A 2014 seminal study by John Pencavel, professor of economics at Stanford University found that working more, beyond a certain threshold, can actually make you less productive: employee output decreased after a 50-hour work week and plummeted even further after 55 hours. 

Also read: 90 hours per week: What's with this foot in the mouth

Essentially, someone who puts in 70 hours produces nothing more with those extra 15 hours. The pandemic, which accelerated a shift to remote work, in fact, saw work hours goup, with a general sense of fatigue over Zoom calls and check-ins. According to an article published by the Centre for Economic Policy Research, optimum working hours allow employees to recover from fatigue and work with increased focus.

Moreover, long hours can also prove fatal. A 2021 analysis from the World Health Organization and ILO showed that nearly three-quarters of a million people died from stroke and heart disease due to long hours in 2016, with middle-aged and older men most affected. Last year, the death of an employee at Ernst & Young (EY) allegedly due to work pressure sparked a debate in India.

Overtime debate

While labour laws mandate specified work hours, there are also provisions to tackle the need for overtime work. Several countries have overtime premia of 50% above the regular wage.

In India, usually blue-collared employees who work over 48 hours per week are eligible for overtime twice the rate of their normal wages. There are also exemptions for certain categories such as managers, supervisors, and employees working on contracts, among others, leaving white-collar employees in a grey area in terms of overtime payment.

As countries, particularly in the developing world, vie for competitive capital to speed up economic growth, labour laws constantly come under the lens. 

Also read: Growing health concerns force startup boards, investors to press for work-life balance

On one side, industry leaders advocate for longer work hours, while on the other, the 2023-24 Economic Survey stirred controversy by proposing reductions in overtime wages. The survey argued that high overtime rates make Indian industries less competitive, driving production to countries like Vietnam, China, and Malaysia, where overtime costs are lower.

While India is currently the most populous country, with a massive young population with the potential to contribute to the country’s growth and prosperity, the push for longer hours or lower overtime wages without addressing productivity issues may lead to unequal progress, which the developed countries are already battling.

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