Overtime: Increase and Legal Calculation 2026

The management of overtime represents a major challenge for HR and payroll services. Between the obligations of employment law, collective agreement provisions and specificities related to actual working time, payroll managers must master a precise legal framework to avoid any employment tribunal disputes. This article details the applicable rules in 2024.

Legal definition of overtime

According to article L3121-28 of the Employment Code, any hour worked beyond the legal weekly duration of 35 hours constitutes overtime, at the employer's request or with their implicit agreement. Overtime is counted by calendar week (Monday 0h to Sunday 24h), 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 taken into account: break times, commute times or absences (even if paid) are not counted, unless collective agreement provisions provide otherwise.

Applicable premium rates

Article L3121-36 of the Employment Code sets the legal premium rates:

• 25% for the first 8 overtime hours (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, provided it is not lower than 10%. The premium may be replaced, in whole or in part, by equivalent compensatory rest (RCE) according to article L3121-37.

Beyond the annual overtime allowance (220 hours by default according to article D3121-24), each hour entitles the employee to a compulsory rest equivalent: 50% for companies with 20 employees or fewer, 100% beyond that.

Practical calculation method

The calculation of overtime is carried out 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 premium rates

• Incorporate remuneration elements: bonuses linked to the nature of work, individual performance bonuses

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

Employer obligations

The employer must keep an accurate record of working time (article D3171-8) via a clocking system, signed attendance sheets or HRIS software. These documents must be kept for 3 years and presented to the labour inspectorate on request. Failure to pay overtime can result in back pay claims for 3 years (article L3245-1) plus damages for undeclared work (6 months' salary).