Want to find out if you have to pay out overtime or if the working day schedule is being met? Here’s a helpful online tool to calculate overtime.
The control of overtime has become a necessity, especially given new laws such as the one in Spain, designed to have a record and register of the amount of working hours, whether it concerns the established hours in the working day or the overtime hours. This Business Calculator is a helpful tool for you.
How does our Overtime calculator work?
This business calculator, just like the relevant law, seeks to benefit both the employer and the employee, as well as allowing companies to keep watch over working hours as well as workplace absenteeism.
In return, employees are allowed to control overtime pay and protect themselves from any non-paid overtime practices. These overtime hours are usually covered by the employer in their labour costs. If you would like to learn more about the subject you can read here and know all the details about the real cost of an employee to a company.
Among the parameters that we need to take into account for your calculations, we may find :
- the annual working hours contracted or convened
- the hours that you work
- the salary
- the amount of days of holiday afforded and taken, and public holidays.
How to calculate the pay for overtime?
There are 2 alternative ways for the company to compensate overtime. The first involves the return of hours worked overtime with additional holiday pay, or to put it in other words, additional holiday days.
The second way is to increase the rate of pay for overtime hours by 75% per working hour. To do this we need to apply this formula :
Price of overtime hours = (monthly pay/30) / (daily working hours) * 1.75
In which :
1 represents the hour itself
0.75 is the additional 75% required by e.g. Spanish law (may vary per country).