Supplements for overtime, night work and work on public holidays

Employees often also work outside their standard working hours – overtime, at night, at weekends or on public holidays. For such work they are entitled to statutory supplements, which the employer must calculate and pay correctly. Overtime supplements and other wage premiums are among the items most frequently checked during labour inspections, so it pays to give them extra attention right from the moment you set up your payroll system.

When the entitlement to supplements arises

The entitlement to a supplement arises whenever an employee performs work under the conditions defined by law. There are several types of premium, and they can also be combined – for example, overtime worked at night gives rise to two separate supplements at the same time. The basis of the calculation is always either the wage earned or the minimum hourly amount set by law, depending on the type of supplement.

• overtime supplements,
• night work supplement,
• supplement for work on Saturday and Sunday,
• supplement for work on a public holiday.

Overtime supplements

Overtime is work performed beyond the set weekly working time on the employer’s instruction or with its consent. For overtime, the employee is entitled to the wage earned plus a supplement, or alternatively to time off in lieu, if the two parties agree on this. The law also sets limits on how many hours of overtime can be ordered and how many can be agreed per calendar year, so attendance must be recorded and monitored consistently to make sure these caps are not exceeded.

Night work, weekends and public holidays

Work at night, on Saturdays, on Sundays and on public holidays carries separate supplements, which are usually set as a percentage of the minimum wage or of the employee’s average earnings. Some professions that work mainly at night have special rules and lower thresholds. As both the rates and the minimum amounts change over time together with the minimum wage, always check the current figures in the Labour Code in force.

How supplements are calculated and recorded

A correct calculation rests on precise records of the time worked, showing when the work took place. The payroll system must place every hour in the appropriate category and assign it the correct premium. Mistakes arise mainly when several supplements are combined at once and when the basis of the calculation is determined incorrectly.

1. record the hours worked by time and day,
2. assign a type of supplement to each hour,
3. calculate the premium from the correct basis,
4. take into account several supplements applying at once.

Why accuracy matters

Incorrectly paid supplements for overtime or night work can lead to back payments and fines from the labour inspectorate, as well as to a deterioration in relations with employees. Professional payroll processing ensures that every component of the wage is calculated in line with the law and that the records will stand up to an inspection.

Agreed versus statutory supplements

The law sets the minimum amount of the individual supplements, but the employer can also agree more favourable terms with its employees, for example in a collective agreement or in the employment contract. Such an agreement must not go below the statutory minimum, but it may go beyond it. In practice it is therefore important to distinguish what follows directly from the law and what from an internal agreement, because this affects both the calculation and the tax treatment. Equally, care must be taken to determine average earnings correctly where a supplement is calculated from them. When several premiums are combined, it pays to have a clearly configured payroll system that evaluates every hour correctly so that the entitlement is not understated.

Do you need certainty about supplements and attendance records? Bilvao’s payroll specialists will set up the process for you so that everything adds up.

Related articles: Wage deductions and enforcement: how to proceed, Annual leave: entitlement, calculation and payment in lieu, Agreements on work performed outside employment: DoPČ, DoVP, DoBPŠ.

Frequently asked questions

Can the overtime supplement be replaced with time off in lieu?

Yes, if the employer and the employee agree, time off in lieu can be given for overtime instead of the supplement. The conditions and the deadlines for taking it are governed by the Labour Code.

Do supplements add up if the work overlaps?

Yes, the individual supplements can be combined – for example, overtime worked at night. Each premium is calculated separately. Check the current rates and the basis of the calculation in the legislation in force.