- Five terms to separate first
- Premium rates and how they stack
- Working out the hourly base
- Why attendance should sort hours first
The short answer
Overtime pay is not simply hours worked times an hourly rate. Attendance first has to sort each hour into overtime, rest-day work or late-night work, and each category takes its own premium. Getting the categories right before payroll is what matters most.
Five terms to separate
- Statutory hours: in principle 8 hours a day, 40 hours a week (44 a week at certain small workplaces)
- Scheduled hours: the hours set in the company's rules
- Overtime: hours beyond the statutory limit
- Rest-day work: work on the statutory rest day (one day a week, or four in four weeks)
- Late-night work: 10 p.m. to 5 a.m.
At a company with a 7-hour scheduled day, the eighth hour is outside scheduled hours but within statutory hours; if the weekly 40 hours is not exceeded either, the law requires no premium (the company may still pay one).
Minimum premium rates
| Category | Premium |
|---|---|
| Overtime | 25% or more |
| Overtime beyond 60 hours in a month | 50% or more |
| Rest-day work | 35% or more |
| Late-night work | 25% or more |
Categories stack: overtime at night is 50% or more, rest-day work at night 60% or more. The 50% rate beyond 60 hours has applied to small and medium-sized companies since 1 April 2023.
The hourly base
For monthly pay, divide the monthly wage by the average scheduled hours per month, then apply the premium. Family, commuting, separate-residence, education and housing allowances, irregular payments and payments made less often than monthly can be excluded — but judged by substance. An allowance paid equally to everyone cannot be excluded.
Sort in attendance, then hand over
Record start, end and breaks in attendance, settle the category of each hour there, and pass the confirmed hours to payroll. Payroll then only applies rates. APOUL KINTAI aims to run from clock-in to close in one flow and hand the confirmed figures on.
Summary
Separate statutory from scheduled hours, sort overtime, rest-day and late-night work, and apply each premium. Check individual cases with the Labour Standards Inspection Office or a specialist.
APOUL KINTAI