Overtime: Increase and Legal Calculation

Overtime: Increase and Legal Calculation

Managing overtime represents a major challenge for HR and payroll services. Between the obligations of the Labor Code, the conventional provisions and the specificities linked to actual working time, payroll managers must master a precise legal framework to avoid any labor dispute. This article details the rules applicable in 2024.

Legal definition of overtime

According to article L3121-28 of the Labor Code, any hour worked beyond the legal weekly duration of 35 hours constitutes overtime, at the request of the employer or with its implicit agreement. Overtime is calculated per calendar week (from Monday 12 a.m. to Sunday 24 p.m.), unless a collective agreement provides for another reference period.

It is essential to distinguish overtime from complementary hours, the latter only concerning part-time employees. In addition, only actual working time is taken into account: break times, commuting times or absences (even paid) are not counted, unless otherwise agreed by agreement.

Applicable increase rates

• Article L3121-36 of the Labor Code sets the legal increase rates:25%
• for the first 8 overtime hours (from the 36th to the 43rd hour inclusive)50%

from the 44th weekly hour

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

Beyond the annual quota of overtime hours (220 hours by default according to article D3121-24), each hour entitles you to compulsory compensation for rest: 50% for companies with 20 employees or less, 100% beyond.

Beyond the annual quota of overtime hours (220 hours by default according to article D3121-24), each hour entitles you to compulsory compensation for rest: 50% for companies with 20 employees or less, 100% beyond.

1. Practical calculation methodThe calculation of overtime is carried out in several steps:
2. Determine the basic hourly rate ⬥⬥⬥: gross monthly salary ÷ 151.67 hours (legal monthly duration)Identify the number of overtime hours
3. per weekApply the corresponding
4. increase ratesIntegrate remuneration elements ⬥⬥⬥: bonuses linked to the nature of the work, individual performance bonuses

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

Employer obligations

The employer must keep a precise count of working time (article D3171-8) via a badge system, signed attendance sheets or HRIS software. These documents must be kept for 3 years and presented to the labor inspectorate on request. Failure to pay overtime may result in back pay over 3 years (article L3245-1) accompanied by damages for concealed work (6 months' salary).