How are Overtime Paid in Companies?

Overtime is paid by employers to workers. This is done when they work during a different time or schedule than the one previously agreed upon by both in the employment contract.

In other words, extra hours are additional income to salary, which the worker receives from his employer, as consideration for his work outside of his normal working hours.

This is something common and occurs when due to some situation, it is necessary for the worker to remain in his work a little beyond his departure time. Or, when there are special seasons, such as the Christmas holidays with extended special hours, or due to lack of staff.

Whatever the reason, the truth is that the employer is obliged by law to pay or compensate for this overtime time as scheduled with the worker at the beginning of their employment relationship.

Working Hours and Overtime

The first important thing to know is that overtime and everything related to the employment relationship may vary from one country to another. However, all its related aspects have in common being stipulated in the Labor Law. It should be noted that this name may also vary depending on where the working day is carried out, so this article will cover the information in a general way.

Before starting the calculation of overtime, it is necessary to know the different types of working hours that exist since, based on these, the first ones will be calculated.

There are three types of workday:

• Daytime working hours: the vast majority of countries indicate in their Law that includes working hours. It goes from 6 o'clock to 8 o'clock.
• Night working hours: the vast majority of countries indicate in their Law that they include working hours. It goes from 8:00 p.m. to 6:00 p.m.
• The mixed working day: the vast majority of countries indicate in their Law that they include working hours that combine a period of time in daytime and another On a night shift, yes and only yes, the time computed at night is up to three and a half hours, since otherwise it will be a work shift nocturnal.

In each of the cases, the laws also establish the amount of maximum hours that a worker can work, that is, they limit working hours.

In this case, generally in many countries, the limit of maximum hours that each worker can work is days:

• Daytime: 8 hours a day
• Night time: 7 hours a day
• Mixed: 7.5 hours

In most countries, the maximum limit of weekly hours that must be worked should not exceed 40 hours, Furthermore, between the end of one working day and the beginning of the next, they must spend at least 12 hours of rest.

Conditions for the Payment of Overtime

It is also usual that the legislation of most countries establishes a maximum amount for the worker to remain in their workplace. And, in case of exceeding this time, this period will be considered as overtime. In addition, the employer is obliged to pay them and the worker has the right to have them paid.

Depending on the country in question, the conditions for the payment of overtime, established by law, may vary. However, they tend to be basically very similar and include aspects such as:

• The remuneration for an extra hour is at least twice an hour of the normal working day of the worker.
• Overtime cannot exceed a number per day or per week, in some countries to exceed these limits, the payment would be triple an hour of the working day normal worker, for example, they cannot exceed 3 extra hours a day or more than 3 times during a week.
• They must be agreed between the worker and his supervisor.
• The worker is not obliged to comply with an extra work schedule.
• In some countries it is forbidden to require, or even request, a minor to work overtime.
• Generally, the maximum annual overtime limit is 80, however in cases of force majeure, this period is unlimited and not restricted.

Overtime Calculation and Payment

To calculate these additional hours It is important that supervisors and workers keep a record of them, the first to calculate the amount to pay and the second to verify your full payment.

Then, at the time of calculation, proceed as follows:

1. Determine the daily salary: Divide the salary by 30 days.
2. Recharge to this daily value of the working hour per normal day, the percentage that corresponds by law for overtime.
3. Multiply the value obtained for the amount to be paid for overtime by the amount of hours worked in excess outside of normal working hours.