Overtime discussions often fail because people mix:
- total hours (time math)
- hourly rate vs monthly salary (payroll math)
- the exact type of overtime (weekday/weekend/holiday/night)
This guide gives you a clean framework to calculate overtime pay and to ask the right questions so you don’t end up with “surprises” in payroll.
TL;DR
- First, define the type of overtime and whether it’s compensated by time off or extra pay.
- When you have a monthly salary, compute a realistic hourly base (don’t assume every month has the same working hours).
- Track your hours with a timesheet and confirm the company’s overtime policy in writing.
- the Overtime rules the time calculator the time with break calculator and the timesheet.
What counts as overtime (in practice)
Overtime usually means hours worked beyond your normal schedule (commonly 8 hours/day, 40 hours/week), but the exact reference depends on:
- your employment contract
- your company’s internal policies
- how your schedule is structured (shift work, flexible hours, etc.)
Important: in many companies overtime must be approved/authorized. “I stayed late” is not always treated as payable overtime unless it’s recorded and accepted.
Step 1: Define the overtime type (don’t skip this)
Ask HR/your manager:
- Is this weekday overtime?
- Weekend work?
- Public holiday work?
- Night work?
- On-call (availability) vs actual working time?
Different rules and multipliers can apply. Don’t assume “overtime is overtime”.
Step 2: Clarify the compensation method (time off vs pay)
In Romania, overtime is often handled via:
- compensated time off within a defined time window, or
- extra pay if time off isn’t provided/possible
What matters for you:
- Which method is used in your company?
- What is the timeline? (e.g., time off must be granted within X days)
- What multiplier applies for paid overtime (if paid)?
Even if the law sets minimums, companies can offer better terms. You should always check your contract and the internal policy.
Step 3: Compute your base hourly rate (for monthly salaries)
If you have a monthly salary, you need an hourly base to compute overtime pay.
The simplest model:
- hourly base = monthly gross / working hours in that month
Why “in that month” matters:
- some months have more working days than others
- public holidays can reduce working hours
If you want a stable comparison across months, some companies use a standard monthly hours reference (e.g., average). Ask payroll what they use.
Step 4: Apply the overtime multiplier (or rule)
Your contract/internal policy defines the multiplier and process. Examples you’ll see in real life:
- +X% over base hourly for overtime hours
- time off equivalent (1:1) or with a bonus (e.g., 1 hour overtime → 1.5 hours time off)
Important: on-call can be handled differently than actual overtime hours worked. Separate “availability compensation” from “work compensation”.
Worked examples
Example 1: Weekday overtime (paid)
Assumptions:
- monthly gross = 15,000 RON
- working hours in month = 168
- overtime hours = 10
- multiplier = +75% (example)
Hourly base ≈ 15,000 / 168 ≈ 89.29 RON/hour. Overtime hourly ≈ 89.29 * (1 + 0.75) ≈ 156.26 RON/hour. Overtime pay ≈ 10 * 156.26 ≈ 1,562.6 RON (gross).
Use the calculator to avoid arithmetic errors:
Example 2: Overtime compensated via time off
If your company grants time off instead of paying overtime, the key questions are:
- how many hours of time off per overtime hour?
- by when must the time off be granted?
Keep evidence:
- timesheet entries
- written approval and the agreed compensation method
How to track overtime so it’s actually recognized
Overtime “exists” operationally only if it’s recorded and approved.
Practical workflow:
- Track actual start end times:
- the time calculator or the time with break calculator
- Record hours in a monthly timesheet:
- the timesheet
- Confirm approval/compensation in writing (email/slack summary is better than nothing)
Common mistakes (that create payroll conflicts)
- Treating a monthly salary as a fixed hourly rate regardless of the month’s working hours.
- Counting “being online” as overtime without approval or clear deliverables.
- Mixing on-call availability with working time.
- Not clarifying whether compensation is paid or time off.
- Not recording hours (no evidence → no leverage).
FAQ
Should I negotiate overtime terms before joining?
Yes, especially for roles that mention on-call, incidents, or high-intensity delivery. Ask for:
- a written overtime policy
- whether overtime is expected “sometimes” or frequently
- how it’s compensated
Can I refuse overtime?
This is a legal/employment topic that depends on your contract and context. The practical advice: clarify expectations before you accept an offer, and avoid roles where “unpaid overtime is normal”.
What should I read next?
For continuity, see working days and planning and timesheet best practices.
