How to calculate overtime hours

Published on
November 16, 2023
How to calculate overtime hours

In both large companies and small businesses, overtime is a regular part of many employees’ work schedules. If you are responsible for tracking and calculating these hours, understanding the rules and processes is essential. To avoid calculation errors, many companies now use overtime management software, which simplifies this process and ensures compliance.

What is considered overtime?

Overtime refers to working hours beyond the legal or contractual limit. It applies only to full-time employees.

For part-time employees, any extra hours worked are called additional hours, which follow a different set of rules. In companies with a standard workweek above the legal 35 hours, the contract or collective agreement defines the threshold for overtime.

For full-time employees, the legal weekly working time in France is 35 hours. This can be modified by collective agreements or sector-specific arrangements. Overtime starts from the first hour worked beyond the agreed weekly hours.

Some sectors, such as healthcare or transport, may have specific overtime rules set by collective agreements.

Limits and employer obligations

Overtime work is usually requested by the employer or a line manager. However, in certain cases, employees may work overtime on their own initiative if their workload requires it and the employer does not take steps to reduce it.

There are strict limits to respect:

  • Maximum duration: employees cannot work more than 48 hours per week, including overtime.
  • Employer obligations: employers must track all hours, calculate them correctly, and pay overtime according to legal rates or collective agreements.
  • Employers must also ensure mandatory breaks and rest periods are respected, even during heavy overtime periods.

Calculating overtime hours

To calculate overtime, a reliable time tracking system is essential. The main steps are:

  • Record all hours worked, including overtime.
  • Compare actual hours to the legal or contractual work schedule.
  • Apply the correct overtime rate or convert hours into compensatory rest if applicable.

Overtime management software automates this process, reducing human errors and providing dashboards to monitor overtime trends over time. This helps to anticipate staffing needs and prevent excessive overtime.

Overtime pay rates

Overtime pay is higher than standard pay. In France, legal rates include:

  • 25% increase for the first 8 overtime hours in a week.
  • 50% increase for any additional overtime.
  • 50% increase for the first 7 hours worked on a rest day.
  • 100% increase for any additional hours on a rest day.

These hours must appear separately on the employee’s payslip, with different lines showing each rate category.

Calculating compensatory rest

When compensatory rest is granted instead of payment, this rest is calculated based on the overtime rate:

  • 1 overtime hour paid at 50% gives the right to 1.5 hours of rest.
  • 1 overtime hour paid at 100% gives the right to 2 hours of rest.

Compensatory rest can be either full (replacing pay entirely) or partial (combining rest with partial payment). This system helps balance workload and employee well-being while controlling costs for the company.

Specific rules for compensatory rest are usually set by collective agreements or internal company policies, depending on the sector.

Overtime at night

For companies operating at night, night overtime must also be tracked. In France, night work generally refers to shifts between 9 pm and 6 am. Employees working at night may receive specific compensation according to collective agreements.

In some cases, night work allowances are paid separately. These amounts vary depending on sector agreements or internal policies.

Simplify with overtime management software

Managing overtime manually can quickly become complex, especially in companies with many employees or irregular schedules. Using dedicated overtime management software helps prevent errors and ensures legal compliance.

These tools automatically track hours, apply correct overtime rates, and update payslips. They also improve transparency by allowing employees to view their worked hours and overtime compensation directly.

For employers, such tools save time and reduce administrative workload, ensuring clear communication and fair treatment for all employees.