Module 2/4 32 min
Calculating overtime pay — the forgotten 20%
Step 1 / 3·Three base rates by type of day
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Learning objectives — after this module you will:
- Apply the right percentage to each type of day
- Calculate pay for overtime worked at night
- Explain why the night premium and the 20% are two separate amounts
Learn ~10 min
Three base rates by type of day
Tell ordinary days, weekly rest days and public holidays apart.
Article 98 of the 2019 Labour Code sets the minimum payable for overtime, calculated on the unit wage or the wage actually paid for the work being done. The words 'at least' matter: paying more is fine, paying less is not.
Minimums under Article 98
| Overtime worked on | Minimum | Note |
|---|---|---|
| An ordinary working day | 150% | That is 50% above the normal hourly rate |
| A weekly rest day | 200% | Usually Sunday, depending on the employer's roster |
| A public holiday or paid leave day | 300% | On top of the wage for the paid day itself |
The note on the 300% row is often skimmed
On a public holiday the employee is already entitled to full pay for the day off. The 300% is for the OVERTIME hours, added to that day's wage, not instead of it.