Overtime pay is a crucial aspect of the employment landscape, serving as a means to compensate employees for their additional work hours. Throughout Europe, different countries have distinct trends and practices regarding overtime compensation. This article explores the general trends and various types of overtime pay prevalent in European countries, providing valuable insights for both employers and employees.

Overtime Pay Trends in Europe

Moreover, the concept of flexible work arrangements, such as remote work or compressed workweeks, is gaining popularity and influencing overtime practices. In some countries, such as Romania, overtime hours are forbidden for workers under 18, part-time workers, and pregnant employees.

Each country has its common practices. The articles of the collection “Taxes and payrolls” of our blog explain the specific situation of each country regarding overtime hours, sick leaves, minimum wages, income taxes, etc.

Which country offers a higher overtime pay rate?

As we can see, the most common practice in overtime pay is to offer from 150% to 200% of the pay rate, depending on the situation.

The countries with the highest overtime pay rate are Belarus, Latvia, and Ukraine. These countries offer a 200% pay rate for any hour worked above the established working hours.

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Different practices

Fixed Overtime Pay: 

This fixed rate can change depending on the day the overtime is happening. For example, in Bulgaria, the overtime pay rate is:

Usually, it also increases when overtime hours are performed at night. Some countries have very specific regulations on that. Such as Sweden, which follows these particular rules:

Time Off in Lieu: 

In Austria, the time off in lieu can correspond to 1.5x the hours worked overtime.

Variable Overtime Pay: 

In France, overtime is compensated at 125% for the first 8 hours and at 150% from there. 

In Portugal, the limit is lower. The overtime pay rate increases from 125% to 137.5% after the first hour. Moreover, after the first 100 hours of overtime in a year, the rates increase to 150% in the first hour and 175% after that.

Conclusion

Overtime pay practices across European countries reflect the diverse cultural and legislative landscapes. As an employer or employee, understanding the prevailing practices in a specific country is crucial for compliance and ensuring fair compensation. By embracing transparent and equitable overtime pay systems, employers can foster a positive work environment, enhance employee satisfaction, and ultimately drive productivity.

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