Overtime: Premium and Legal Calculation 2026

The management of 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 labour dispute. 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 request of the employer or with his implicit agreement. Overtime is calculated per calendar week (Monday 0h to Sunday 24h), except where a collective agreement provides for another reference period.

It is essential to distinguish overtime from additional hours, the latter concerning only part-time employees. Furthermore, only actual working time is taken into account: rest breaks, commuting time or absences (even if paid) are not counted, unless collective agreement provisions provide otherwise.

Applicable premium rates

Article L3121-36 of the Labour 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 sectoral agreement may provide for a different rate, provided it is not less than 10%. The premium may be replaced, in whole or in part, by equivalent compensatory rest (RCE) pursuant to article L3121-37.

Beyond the annual overtime contingent (220 hours by default under article D3121-24), each hour entitles the employee to mandatory rest compensation: 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

• Integrate remuneration elements: bonuses related 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 General Tax Code).

Employer obligations

The employer must maintain 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 a wage recovery over 3 years (article L3245-1) together with damages for undeclared work (6 months' salary).