Overtime: how does it work and how to calculate it?

Overtime: how it works, how to calculate it and much more! Read the text!

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Overtime is very beneficial for the employee, as they receive more than their salary and have more time to organize and complete their tasks.

However, it may not be viable for the company in financial matters. Therefore, it is common for there to be disagreements between the company and the employee in this regard.

Of course, it is very important that you understand what this practice is, how it works and how the calculation is carried out, only then will you know if you are receiving the fair value.

In today's text you will discover more details about the subject. See below what we will cover in this post:

  •  What is overtime?
  • Overtime: how does it work?
  • What is the value of overtime and how do you calculate it?
  • What is not overtime?
  • Conclusion. 

What is overtime?

Overtime is a period of work beyond our working hours. When we join a company, we sign an employment contract that states the days and times of our working hours.

In the same way that it can be deducted from our salary when we do not meet this deadline, if the company asks us to stay beyond this time or day, it is already considered overtime and they must pay us a higher amount.

You can't just decide to stay late at work and then charge the company extra. Every organization has its own rules, some leave this option up to the employee.

However, others have their own rules for this topic, so it is important to check with leadership how this issue is handled in the company before doing so. overtime on your own.

Overtime: how does it work?

Despite being a worker's right guaranteed by the Federal Constitution and Labor Laws, the rules for overtime may change depending on the shift or work regime, for example.

Since 2020, non-payment of excessive overtime is considered a serious irregularity, and is also a plausible reason for indirect termination.

In this termination model, it is the employee who dismisses the employer, it works as a just cause, but in reverse.

This practice is provided for by law and occurs for reasons indicated therein.

According to the Labor Laws, the working day must not exceed 8 hours per day or 44 hours per week. If this limit is exceeded, whether by minutes or hours, it is considered overtime.

However, there are professionals who work on different shifts, where the work regime does not allow for the benefit of working overtime.

Furthermore, article 59 of the CLT43 determines that the additional working day may be up to 2 hours per day, always through a contract or collective labor agreement.

However, in a private environment, if there is prior agreement between the parties involved, this period may be longer.

Some companies have stricter rules regarding overtime, precisely to have control and to ensure that the company's finances are not negatively impacted by unnecessary excess of this practice.

What is the value of overtime and how do you calculate it?

The value of overtime must be greater than the value of normal hours worked. The minimum payment determined by law is 50%.

Overtime worked on weekends and holidays is worth 100%. 

In addition, the shift you work can also change the percentage, for example, an employee who works from 10 pm to 5 am should receive 50% + 20% of the night shift bonus.

Overtime: how to calculate?

First of all, you need to know what your hourly rate is. This is stated on your pay slip or you can ask HR, look at your employment record or contract.

You can also calculate your hourly rate as follows: divide your salary by the monthly hourly rate, the result will be your hourly rate.

Now that you know the value of your hour, it is easier to calculate the value of your overtime.

Let's assume that the value of your hour is R$7.39, the sum will be made with the overtime at 50%.

During the month, you worked a total of 14 hours of overtime per week, without any holidays or weekends.

Then, add R$7.39 divided by 2 = R$3.69. Finally, multiply the value of the regular hour by 14 days and multiply the value of the overtime hour also by 14.

  • 7.39 X 14 = R$103.53
  • 3.69 X 14 = R$51.76

Now, add the result of the value of this multiplication, that is:

  • R$103.53 + R$51.76 = R$155.29

The amount you should receive for the extra 14 hours is R$155.29. The calculation performed with the value of the extra hour at 100% is simpler, as you only need to multiply your hour instead of dividing by 2.

This is a simple calculation, but it can be more difficult to calculate if you have night shifts or hours that alternate between weekdays and weekends.

If you are not good at math, you may get confused and have difficulty when it comes to math. overtime: how to calculate?

However, you can ask an accountant, HR staff or even use a calculator available on Google for help.

It is worth noting that the calculations made above are based on the work regime where the divisor is 220 per month, including RSR (Remunerated Weekly Rest).

What is not overtime?

Some people still have doubts about what is considered overtime and end up creating confusion about the subject or having their rights violated.

To prevent this from happening, it is important to know what is and what is not overtime. You can check what it is in the first topic. Now, you will learn what is not considered overtime.

The time spent traveling from your home to work is not considered overtime, and neither is remaining idle at the workplace beyond normal hours without proof or request.

Therefore, only work overtime if requested and be sure to clock in or sign a document proving this action.

Overtime can also influence the value of the thirteenth salary and vacations, so it is always a good idea to keep your time sheet or pay slip, so you can make the exact calculation.

Conclusion

Overtime: how to calculate Is this a challenge for you? Normal. You are not the only one who has difficulty performing these calculations.

However, it is important to know, or at least know who to turn to when calculating, only then will you know if you are receiving a fair value for your hours.

Recommended reading: Indeed – The job opportunity you’ve been looking for.

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