Overtime bonus

Overtime pay is remuneration paid to employees for hours worked over and above the regular working hours agreed in the employment contract. This principle is firmly anchored in labor law and serves as a financial incentive or compensation for those employees who work more than the usual number of hours - often a 40-hour week. The ordering of overtime and the corresponding remuneration in the form of an overtime bonus are subject to the Working Hours Act and, where applicable, collective agreements or works agreements. In certain cases, employers are obliged to pay not only the regular hourly wage for overtime, but also an overtime premium.

What extra pay is there for overtime?

The amount of the bonus for overtime worked can be determined by statutory provisions, collective agreements or individual agreements. In employment law, the overtime bonus serves on the one hand as fair payment for additional working hours and on the other hand as an expression of the employer's recognition of the employee's commitment and flexibility. The exact regulations on overtime and overtime pay may vary from company to company, but the aim is always to ensure fair and appropriate remuneration for additional work.

Is overtime pay required by law?

In German labor law, overtime pay is generally not prescribed by law. Whether there is an entitlement to a financial supplement for overtime - as well as the amount of the overtime supplement - often depends on the individual agreements between employer and employee or on industry-specific collective agreements. In many cases, a supplement is paid for overtime worked to compensate employees for the additional workload and flexibility. However, this overtime bonus is not always legally binding unless a corresponding agreement has been made.

Overtime bonus and working time account

A working time account is essential for the correct recording and fair payment of overtime. Ideally, this should be a working time account in a digital time recording system. The electronic working time account in a system such as Krutec WEB provides a clear and transparent overview of accumulated overtime so that it can be compensated or paid out as required. Employers also benefit from the clear structure of a working time account, which greatly simplifies the management of overtime for accounting purposes and at the same time complies with legal requirements - for example with regard to the Working Hours Act or the mandatory recording of working hours. Overall, a well-managed working time account is essential to ensure the accurate accounting of overtime and to provide a fair and comprehensible solution for both employees and employers.