BCEA Guide

How to Calculate Overtime in South Africa

The Basic Conditions of Employment Act (BCEA) sets the rules for overtime in South Africa. The rate depends on when the overtime is worked — weekday, Saturday, Sunday or public holiday.

Overtime Rates at a Glance

1.5×

Weekday & Saturday overtime

2×

Sundays (if not normally worked)

2×

Public holidays worked

Step 1 — Calculate the ordinary hourly rate

For monthly-salaried employees, divide the monthly salary by the number of ordinary working hours per month. The BCEA uses 4.33 weeks per month × ordinary daily hours:

Monthly salary ÷ (weekly hours × 4.33) = hourly rate

Example: R15,000 ÷ (40h × 4.33) = R15,000 ÷ 173.2 = R86.61/hour

Step 2 — Multiply by the overtime rate

Scenario	Rate	Formula	Example (R86.61/h × 3h)
Monday–Saturday overtime	1.5×	hourly × 1.5 × hours	R389.75
Sunday (not normally worked)	2×	hourly × 2 × hours	R519.66
Sunday (normally worked)	1.5×	hourly × 1.5 × hours	R389.75
Public holiday (worked)	2×	hourly × 2 × hours	R519.66

BCEA overtime limits

Maximum 10 hours overtime per week
Maximum 3 hours overtime per day
Overtime must be agreed in writing (employment contract or separate agreement)
Employees earning above the earnings threshold (R254,371.67/year in 2025) can agree to different terms

Is overtime subject to PAYE and UIF?

Yes. Overtime pay is remuneration and is added to the employee's monthly gross salary for PAYE calculation. It is also subject to UIF up to the monthly ceiling (R177.12).

Frequently Asked Questions

Can I pay time-off instead of overtime?

Yes — by agreement with the employee, you can grant 1.5 hours of paid time-off for each hour of overtime worked on weekdays/Saturdays, and 2 hours off for each Sunday/public holiday hour.

What about employees above the earnings threshold?

Employees earning above R254,371.67/year (2025) can agree in writing to different overtime arrangements, including compressed work weeks or averaging agreements.

Is overtime compulsory?

Employees may not be required to work more than 12 hours per day (including overtime) and may refuse overtime that would endanger their health and safety.

Does overtime apply to managers?

Senior managerial employees are excluded from the BCEA's overtime provisions. However, what constitutes 'senior managerial' is interpreted narrowly — when in doubt, apply BCEA rules.

Overtime Calculator

BCEA Guide

Public Holiday Pay

National Minimum Wage

How to Run Payroll

Net Salary Calculator

Automate Overtime

TSS Payroll calculates overtime pay automatically

Add overtime hours per employee before each payroll run. TSS Payroll applies the correct BCEA rate and calculates PAYE and UIF automatically.

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