Governing Law
Overtime is governed by the Employment Code Act, 2019 , Section 75, which sets maximum working hours and overtime rates.
Key Rule: Work exceeding 48 hours per week qualifies for overtime at 1.5x hourly rate (2x for public holidays/rest days).
Overtime Regulations
1. Normal Working Hours
Daily Limit: 8 hours per day maximum
Weekly Limit: 48 hours per week (standard workers)
Guards/Watchpersons: Up to 60 hours per week allowed
Overtime Threshold: Any work beyond these limits
2. Overtime Rates
Regular Overtime: 1.5 Γ hourly rate (150%)
Public Holidays: 2 Γ hourly rate (200%)
Rest Days: 2 Γ hourly rate (200%)
Basis: Always calculated from basic salary, not gross
3. Hourly Rate Calculation
Standard Formula: Monthly Basic Pay Γ· 208 hours
208 hours: Standard calculation (26 days Γ 8 hours)
240 hours: Some banks use this for guards
Basis: Always use basic salary, not total package
4. Employee Rights
Consent Required: Employees must agree to overtime work
Mandatory Payment: Overtime cannot be given as time-off only
Record Keeping: Employers must maintain overtime records
No Waiver: Employees cannot waive overtime rights
5. Tax Implications
Important: Overtime pay is fully taxable and subject to PAYE, NAPSA, and NHIMA deductions just like regular salary.
6. Download Official Legislation
Access the complete Employment Code Act for detailed legal requirements:
Employment Code Act No. 3 of 2019 (PDF)
Official government legislation - Section 75 covers overtime regulations