TSS Payroll
Payroll Mistake

Incorrect Overtime Calculation: Common Mistakes

Overtime is one of the most frequently miscalculated parts of South African payroll — the rules change by day of the week, and small errors compound fast across a whole team.

Mistake 1: Using the wrong rate

Under the BCEA, overtime rates aren't a flat multiplier:

  • Weekdays and Saturdays: 1.5× the ordinary hourly rate
  • Sundays: 2× the ordinary hourly rate (or 1× plus an equal time off, if the employee normally works Sundays)
  • Public holidays: 2× the ordinary hourly rate

Applying 1.5× across the board — including Sundays and public holidays — is the single most common overtime error.

Mistake 2: Calculating the base rate wrong

The ordinary hourly rate should be based on basic salary only — not total remuneration including allowances or benefits, unless the contract states otherwise. Including allowances inflates every overtime calculation for that employee.

Mistake 3: Ignoring the overtime hour cap

The BCEA caps overtime at 10 hours per week for employees covered by the Act (with some sectoral exceptions). Hours beyond this cap without a valid exemption can expose the employer to a compliance risk, separate from the calculation itself.

Mistake 4: Not tracking actual hours

Estimating overtime hours instead of recording actual clock-in/clock-out times is a common source of disputes — especially for hourly or shift-based teams. Keep a reliable time record for anyone earning overtime.

How to check your numbers

Use our Overtime Calculator to verify pay for weekday, Saturday, Sunday and public holiday overtime, or see the full method in our How to Calculate Overtime guide.

People Also Ask

Is overtime calculated on basic salary or total pay?

Basic salary only, unless the employment contract specifies otherwise — allowances and benefits are normally excluded.

Is there a legal cap on overtime hours?

Yes — the BCEA caps overtime at 10 hours per week for covered employees, with some sectoral exceptions.

Do Saturdays get the same rate as Sundays?

No — Saturdays are typically paid at 1.5×, the same as weekdays, while Sundays and public holidays are paid at 2×.

Related Resources

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