What Is Overtime (Overtime Work) Pay?
Overtime work is one of the most frequently encountered subjects in working life and one of the most common sources of dispute. Under our labour law the limit on weekly working time is clearly defined; working time in excess of that limit must be paid at an increased rate as the return for the employee's labour. Despite this, many employees receive only part of the return for the overtime they perform, or receive nothing at all. In this article we address, within a professional framework, the legal basis of overtime, how it is calculated, the points to watch out for in practice and the mistakes commonly made.
To put it briefly, overtime work is — within the conditions set out in the law — work that exceeds the statutory weekly working time of 45 hours. For every hour exceeding this period, the employee must be paid at 50% above the hourly portion of the normal working wage.
Legal Basis and Key Concepts
The core regulation on overtime work is set out in Labour Law No. 4857. Under the law, weekly working time is, as a rule, at most 45 hours. Unless the parties agree otherwise, this period is applied by dividing it equally across the days worked in the week at the workplace. To assess the subject correctly, a few concepts must be distinguished:
- Overtime work: Work in excess of 45 hours per week. A wage increased by 50% arises for each hour.
- Work at extended hours: Where weekly working time is set by contract at below 45 hours (for example 40 hours), work performed between the agreed period and 45 hours. The rate of increase for this work is 25%.
- Averaging (balancing): The averaging of working time between busy and quiet periods over a defined balancing period. Where there is proper averaging, work exceeding 45 hours per week may not always count as overtime.
As a rule, the employee's consent is required in order to have overtime worked; in addition, a statutory upper limit is set for the annual amount of overtime work. Overtime cannot be applied in jobs where, for reasons of health rules, at most seven and a half hours may be worked per day, nor within the restrictions relating to night work. For this reason it is not correct to use the same template for every workplace and every type of work; the specific situation must be assessed separately.
How Is Overtime Pay Calculated?
The essence of the calculation is simple: first the normal hourly wage is found, then the number of overtime hours worked is multiplied by that wage increased by 50%. Step by step:
1. Finding the Hourly Wage
Where the monthly gross wage is taken as the basis, the widely accepted method is to divide the monthly wage by 30 days and the daily wage by the daily working hours. When 45 hours of weekly work is spread over 6 days, a daily working time of 7.5 hours is taken as the basis, and the hourly wage can be calculated approximately by dividing the monthly wage by 225 hours (30 days × 7.5 hours).
2. Determining the Increased Hourly Wage
For overtime work the hourly wage is increased by 50%. In other words, the return for one hour of overtime is 1.5 times the normal hourly wage. For work at extended hours this multiplier is 1.25.
3. Calculating the Total Amount
The number of hours exceeding 45 hours per week is multiplied by the increased hourly wage. For example, for an employee who works 5 hours of overtime per week: the weekly overtime entitlement is found using the formula 5 hours × (hourly wage × 1.5). For the monthly amount, the weekly value is multiplied by the number of weeks in the relevant month.
The tool on this page uses the same logic to provide a quick estimate. However, the result is an approximate value produced without taking into account the person's actual working pattern, additional payments such as premiums and bonuses, the application of averaging, and the terms of the contract.
Points to Watch Out For
- Overtime deemed included in the wage: Some contracts contain clauses such as "the wage includes up to 270 hours of overtime work per year." Even where such a clause is deemed valid, it covers only a portion equal to the statutory limit; work exceeding this limit must be paid separately.
- The free-time option: Instead of the increased wage, the employee may prefer to use one hour and thirty minutes of free time for each overtime hour as the return for overtime work. This choice generally depends on the employee's request.
- Work on national and public holidays is subject to a separate regime; it must not be confused with overtime.
- Limitation period: Overtime receivables must be claimed within a certain period. Delay may lead to a loss of rights; it is therefore important to have an assessment made within a reasonable time after the receivable arises.
The Question of Proof: The Most Critical Point
In overtime disputes the heart of the matter is proof. Under settled practice, as a rule the employee must prove that overtime was worked. Where overtime accruals appear on the employer's signed wage payslips and the employee has signed those payslips without a reservation, it may as a rule be accepted, for that period, that overtime was not worked or that the return for it was paid. For this reason, examination of the payslips is of great importance.
The employee may establish their overtime work by various types of evidence:
- Witness statements (especially persons who worked together during the same period),
- Workplace entry-exit records, time-attendance (PDKS)/turnstile data,
- Shift schedules, overtime approval forms, assignment letters,
- Concrete documents such as e-mails, messages and digital communication records.
In judicial practice, claims that overtime was worked without interruption every day for many years may be found to be contrary to the ordinary course of life; in such cases, an equitable and discretionary reduction may be applied to the calculated receivable. This shows that it is not a single calculation table but a regular and consistent body of evidence that is decisive.
Commonly Made Mistakes
- Thinking the 45-hour threshold is daily: The limit is weekly. Where one day is worked long and another short, the weekly total is taken into account.
- Confusing the 50% and 25% rates: Work above 45 hours is increased by 50%; the portion up to 45 hours of a period reduced by contract is increased by 25%.
- Thinking the "included in the wage" clause is unlimited: The inclusion clause in the contract does not cover work exceeding the statutory upper limit.
- Neglecting to gather evidence: Failing to keep records while the employment relationship continues makes later proof very difficult.
- Gross-net confusion: Calculations are made on the gross wage; the net amount received will be lower because of deductions.
A Short Example Scenario
Consider an employee working for a monthly gross wage of 30,000 TL. The hourly wage is approximately 30,000 / 225 = 133.3 TL. If this employee worked a total of 50 hours in one week, the 5 hours exceeding 45 hours per week count as overtime. Since the increased hourly wage is 133.3 × 1.5 = 200 TL, that week's overtime entitlement is approximately 5 × 200 = 1,000 TL. If the employee maintains this pattern for four weeks, the monthly overtime entitlement reaches approximately 4,000 TL. This example is intended only to show the method; in a real case, premiums, bonuses, averaging and the state of the evidence can change the result significantly.
Conclusion
When correctly calculated, overtime is an important receivable item reflecting the true return for the employee's labour. The method above and the tool on this page give you a starting point; however, the circumstances of every case, the payslip records and the available evidence differ. In order to avoid a loss of rights and to make an accurate assessment, it would be appropriate to review your working pattern and your documents together with a lawyer. This content is for general information purposes and does not constitute definitive legal advice regarding your specific situation.