Overtime: Loadings and Legal Calculation 2026

Managing overtime represents a major issue for HR and payroll services. Between the obligations of the Labour Code, collective agreement provisions and specificities related to actual working time, payroll managers must master a precise legal framework to avoid any unfair dismissal claims. This article details the rules applicable in 2024.

Legal definition of overtime

According to article L3121-28 of the Labour Code, overtime constitutes any hour worked beyond the legal weekly duration of 35 hours, at the employer's request or with their implicit agreement. Overtime is counted per calendar week (Monday 0am to Sunday 24pm), unless a collective agreement provides for another reference period.

It is essential to distinguish overtime from supplementary hours, the latter concerning only part-time employees. Furthermore, only actual working time is counted: break times, commute times or absences (even if paid) are not included, unless collective agreement provisions state otherwise.

Applicable loading rates

Article L3121-36 of the Labour Code sets the legal loading rates:

• 25% for the first 8 hours of overtime (from the 36th to the 43rd hour inclusive)

• 50% from the 44th weekly hour onwards

A company, establishment or sector agreement may provide for a different rate, without being able to be less than 10%. The loading may be replaced, in whole or in part, by equivalent time off in lieu (RCE) according to article L3121-37.

Beyond the annual contingent of overtime hours (220 hours by default according to article D3121-24), each hour entitles the employee to compulsory time off in lieu: 50% for companies with 20 employees or fewer, 100% beyond that.

Practical calculation method

Overtime is calculated in several stages:

• Determine the basic hourly rate: gross monthly salary ÷ 151.67 hours (legal monthly duration)

• Identify the number of overtime hours per week

• Apply the corresponding loading rates

• Integrate remuneration elements: allowances related to the nature of work, individual performance bonuses

Overtime benefits from a reduction in employee contributions (TEPA law) and an income tax exemption up to €7,500 annually (article 81 quater of the CGI).

Employer obligations

The employer must maintain an accurate record of working time (article D3171-8) via a clocking system, signed attendance sheets or SIRH software. These documents must be kept for 3 years and presented to the labour inspectorate on request. Failure to pay overtime can result in a salary back-payment claim over 3 years (article L3245-1) together with damages for unlawful employment (6 months' salary).