Overtime: How to calculate gross salary

OvertimeOvertime is considered those hours worked by an employee outside the normal weekly working time, only for salaried employees directing.

The limit for overtime should not exceed 8 hours per week, according to the Labor Code. The exception is cases of major force. The limiting of overtime quantifies at the level of a reference period of 4 months calendar. In this period the average hours worked must not exceed 48 hours worked / week.

Overtime compensation

The exceeding of norm is compensated with time off in the next 60 days. In case the compensation is not possible in this period, overtime pay next month with an additional of 75% of base salary.

The additional pay is determined by negotiation in the collective bargaining agreement or, if applicable, the individual labor contract and cannot be less than 75% of base salary, according to article 123, paragraph 2 of Law 53/2003 – Labor Code.

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Calculation of gross salary for overtime

To illustrate how to calculate salary if there is overtime, we present a concrete example:

  • Base monthly gross salary = 1008 lei
  • Total number of hours = 174 hours
  • Normal working month = 168 hours
  • Overtime increase = 85%

The gross salary consists of the workload x charge for normal time plus the number of overtime hours x price additional hour.

  • The overtime is calculated as the difference between the number of hours worked (174) and monthly norm (168) = 6
  • Hourly rate was standardized as the ratio between base monthly gross salary (1008 lei) and monthly norm (168) = 6 lei
  • The additional hour is the normal charge rate per hour (6), plus overtime allowance [normal hour rate (6) x 85 %] = 11.1 lei

Thus, The gross salary for the proposed example is (168 x 6) + (6 x 11.1) = 1074.6 lei

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