One of the main routines of human resources professionals and personnel department is to carry out the employee journey management. From this information, it is defined how to calculate overtime and all other values that appear in the payroll.
This is because if the employee does not comply with the working hours defined in the contract, the company has the right to make proportional discounts at that time.
On the other hand, if the employee works more than his pre-defined workday, this excess time can be configured as overtime.
In this format, overtime hours are paid in cash to the employee and must be broken down as such on the payroll.
Therefore, in this article done in partnership with TIC Tac you will find out what the law says about overtime, how it works and how to calculate the value of overtime. For this, we will cover the following topics:
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Overtime: how does it work?
In Brazil, a survey pointed that workers perform an average of 18 overtime hours per month, ranking 7th in the world ranking.
Another survey says 76% of UK citizens usually work overtime regularly.
Therefore, it is very important to understand how to calculate overtime to achieve the correct remuneration for the employee, avoiding labor lawsuits.
This is because the right to receive overtime is provided for in the Consolidation of Labor Laws. Dthat way, only employees who work in the regime CLT has that right guaranteed.
In law, it is stipulated that the remuneration for overtime must have an additional, at least, 50% of the value ordinary working hour. However, depending on the Labor Union in the area, this percentage may be higher.
Furthermore, according to the Art. 59, the adoption of overtime must be approved from an individual or collective agreement.
In general, the employee cannot work for more than 10 hours a day, which in an ordinary 8-hour day would be equivalent to 2 extra hours. On the other hand, this can change depending on the work schedule style=”font-weight: 400;”> in force.
In the case of interns, overtime is not allowed, as this format is regulated by a own law.
Although the right to remuneration for additional hours worked is substantiated by the CLT, this does not mean that employees under the CNPJ regime cannot receive this way. In this case, it becomes a cultural issue of valuing the human capital from the company.
How to calculate the value of overtime
To learn how to calculate overtime, you must first have it in hand the value of the common hour worked of the employee. This calculation is simple: just divide the employee’s gross salary by his monthly workload.
We will consider the minimum wage and the maximum workload stipulated by the CLT. In other words, £ 1,045 and 44 hours of work per week, closing 220 hours per month. The calculation would look like this:
1,045 ➗ 220 = £ 4.75 reais per hour worked.
Now, with the value of the hour worked, we can move on to the next step.
The calculation of overtime varies according to the day of the week worked, if it was a working day, if it was during a holiday or during the night. Check out how it works in the next topics.
Overtime value from Monday to Saturday
When the employee has a day shift and during the days of the week or on Saturday, his / her overtime must be paid 50% above normal time.
That is, the value of overtime is equal to the sum of regular time + 50% of that value. After that, just multiply by the number of additional hours performed.
Still considering £ 4.75, the hourly rate of the minimum wage, and assuming that the employee has worked 7 overtime hours in the month, we would have:
4.75 + 2.375 (50% of the hour worked) = £ 7.125 overtime.
7.125 x 7 (overtime worked) = £ 49.875 in total overtime in the month.
How to Calculate Overtime on Sundays and Holidays
If the employee works on Sundays or holidays and works overtime on those days, his excess time worth twice of ordinary time.
Therefore, based on the hourly wage rate and 7 overtime hours, for example, the calculation would look like this:
4.75 + 4.75 (100% of the hour worked) = £ 9.50 an extra hour
9.50 x 7 (overtime worked) = £ 66.50 in total overtime in the month.
Nighttime overtime calculation
The difference in the formula when overtime is performed during the night is due to the fact that workers with this form of scale receive a night additional in their hours worked.
In general, this surcharge is 20% above standard time. However, it also depends on the union in the area.
If the employee works at night, receives a minimum wage and makes an additional 7 hours, we would have:
4.75 + 0.95 (20% of the hour worked) = £ 5.70 hour worked with night shift
5.70 + 2.85 (50% of the hour worked with night shift) = £ 8.55 per extra hour
8.55 x 7 (overtime paid) = £ 59.85 receivable for overtime in the month.
In this case, the percentage of overtime also depends on the day of the week. In the example, we imagine that the additional time was worked during the working days. However, if it was on holidays or weekends, 100% should be considered, instead of 50%.
Simplify overtime management
All the values presented in the calculations above, take into account the basic rules of the CLT. Therefore, before performing the overtime calculations in your company, check with your accounting style=”font-weight: 400;”> if these are the correct percentages for your business.
In addition, one of the most efficient ways to avoid errors in the sums of overtime and their values is to use a alternative point control system.
These systems bring the technology to the journey management, automating processes and preventing errors or adulterations from occurring in the point records.
THE TIC Tac, for example, does the automatic calculation of both overtime and total amounts to be added to payrolls.
That way, when entering the journey management system, you will find a dashboard with all this information, being able to avoid excess hours.
As you have seen, correctly managing overtime is essential to avoid labor lawsuits. How about sharing this article to help others?