Issues related to overtime of employees are regulated by the Labour Code. The relevant provisions can be found in Article 151.
As a rule, people employed under an employment contract should work no more than 8 hours per day and 40 hours in a five-day working week. However, the extended daily working time is usually 12 hours.
Work performed over the working time norm applicable to an employee is overtime (Labour Code art.151). You should be paid the regular remuneration and an overtime allowance for this work. The overtime allowance rate depends on which day(s) you worked over the norm.
Compensation for overtime (pay or time off)
An employee who works beyond the accepted time norm (resulting from the employee’s working time system) is entitled to compensation in the form of:
1) Time off
if the employee has requested this form of compensation, they are entitled to as much time off as the overtime amount (1:1)
if the employer has taken the initiative, the time off in question shall be 150% of the amount of overtime (1:1.5)
2) Remuneration
wages include the base or regular pay plus 100% or 50% of the wage (depending on which day the overtime work occurred)
Standard overtime pay
Standard overtime pay includes:
- basic pay (resulting from a personal classification determined by an hourly or monthly rate),
- other remuneration components like a fixed bonus, function allowance, and night work allowance.
How to determine the amount of the average remuneration for 1 hour of overtime?
- Add up the fixed salary components of the month (fixed salary + bonus – if received monthly) in which the overtime occurred.
- Then divide this amount by the working hours of that period (the number of hours worked in that month)
Overtime premium
The overtime allowance at the rate of 100% of wages occurs for work on nights, Sundays and holidays (which are not working days for the employee) and on a day off granted to the employee (for work on a holiday or Sunday).
On any other day, the allowance is 50% of the wage.
This means the employee receives their standard salary plus the overtime allowance (100% or 50%) for overtime work.
Payment of overtime allowance
Whether an employee has exceeded the weekly working time standard is determined at the end of the reference period. In the case of a pay period of several months, the overtime allowance can be paid in a different month than the overtime that occurred.