Overtime & Calculations
Companies engaged in their operations may encounter inquiries regarding overtime laws and the associated calculations for their employees.
Fortunately, our payroll services offer comprehensive solutions, delivering precise answers and accurate calculations, alleviating concerns about these intricacies.
With our trusted services, your company can confidently prioritize its core objectives without being burdened by administrative complexities.
Calculations
According to the prevailing Korean Labor Law, the maximum allowable work hours per week stand at 52, comprising 40 regular hours and an additional 12 hours for overtime.
This regulation applies uniformly to all companies with a staff count exceeding 5 employees. However, in cases where a company employs fewer than 30 individuals, the employer may petition for employees to work an extra 8 hours beyond the 52-hour threshold. Such arrangements necessitate prior written agreement between the parties involved.
The computation of overtime rates varies depending on the day and time:
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Overtime worked from 20:00 to 22:00 on Monday to Friday incurs a rate of 1.5 times the regular hourly wage.
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Overtime worked from 22:00 to 06:00 on Monday to Friday incurs a rate of 2 times the regular hourly wage.
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Overtime worked from 06:00 to 11:00 on Monday to Friday incurs a rate of 1.5 times the regular hourly wage.
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Overtime worked on Saturday, Sunday, or Public Holidays from 11:00 to 20:00 incurs a rate of 1.5 times the regular hourly wage.
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Overtime worked on Saturday, Sunday, or Public Holidays from 20:00 to 22:00 incurs a rate of 2 times the regular hourly wage.
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Overtime worked on Saturday, Sunday, or Public Holidays from 22:00 to 06:00 incurs a rate of 2.5 times the regular hourly wage.
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Overtime worked on Saturday, Sunday, or Public Holidays from 06:00 to 11:00 incurs a rate of 2 times the regular hourly wage.
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