Overtime refers to the hours worked beyond an employee’s regular working schedule. Overtime laws, hours of work, and overtime pay vary significantly between countries and industries.
Overtime refers to the hours worked beyond an employee’s regular working schedule. This also refers to the pay an employee receives for this time.
Overtime laws, hours of work, and overtime pay vary significantly between countries. For instance, in Belarus, the work week is 40 hours. In Guatemala, the standard workweek is 44 hours. Some countries even go up to 48 hours.
There are numerous things that countries take into consideration when determining standard working hours. This includes, but is not limited to, the following:
Overtime is designed for two main reasons:
Overtime pay is paid at a higher rate than an employee’s normal wages. In Lithuania, overtime is paid at a rate of 150% of the employee’s regular salary, whereas in Nicaragua, overtime is paid at 200%.
The rate at which workers are paid eventually relies upon the nation and state or province. For instance, overtime regulations differ across Canada's provinces and territories.
For instance, on the off chance that an employee works overtime during a night shift, or on a national holiday, they will be paid at a higher rate than if they worked longer daytime hours.
At times, workers also receive additional pay for longer overtime hours. Look at Peru — workers are paid 125% of their hourly rate for the initial two hours of overtime. Any hours of overtime worked after that, employees are paid at a rate of 135%.
Some countries limit the amount of overtime hours employees can work. In Colombia, for instance, employees are not to work more than 12 hours of overtime per week.
Employers can calculate overtime pay by considering the following factors about their employee’s situation:
Navigating global overtime laws is a complex and time-consuming process. Work with an EOR, like Borderless, to make the process easy and efficient. Book a demo today.
