How are overtime hours calculated and paid?

Quick answer

  1. Overtime is work performed beyond the standard schedule of 8 hours per day.
  2. It is compensated first with paid time off within the following 90 days.
  3. If time off cannot be granted, a premium of at least 75% of base pay is paid.
  4. Maximum working time cannot exceed 48 hours per week on average.
  5. Overtime is performed only with the employee's consent, save for legal exceptions.

What the law says

  • Art. 120 Labour Code: overtime is performed with the employee's consent.
  • Art. 122 Labour Code: compensation with paid time off within the next 90 days.
  • Art. 123 Labour Code: if time off is not possible, a premium of at least 75% of base pay.
  • Art. 121 Labour Code: maximum working time, including overtime, is 48h/week on average.
  • Workers under 18 may not perform overtime.

Practical examples

  • Example: an employee works 10 overtime hours; the company compensates them with 10 paid hours off within 90 days.
  • Example: if time off cannot be granted, the 10 hours are paid with a premium of at least 75% above the hourly rate.
  • Example: at a rate of 30 lei/hour, the 75% premium means an extra 22.5 lei per overtime hour.
  • Example: the 48h/week average is calculated over a reference period of up to 4 months.

Common mistakes

  • Failing to pay the minimum 75% premium when compensation with time off was not possible within 90 days.
  • Exceeding the 48-hour weekly average without a correct reference period.
  • Imposing overtime without the employee's consent, outside force-majeure situations.
  • Lacking an exact record of overtime, which makes correct payment impossible.

How 4softhr helps

  • 4softhr digitally records hours worked and automatically separates normal hours from overtime.
  • It automatically computes the minimum 75% premium or the compensatory time off due.
  • It tracks the 90-day compensation deadline and alerts before it expires.
  • It checks the 48h/week average over the reference period and flags any breaches.
  • It feeds time-tracking data into the 4b2b payroll module for correct payment.
4b2b.net
Business Ecosystem
4conta.ro
Accounting
4invoices.net
Invoicing App
4expenses.net
Expense Management
4notify.net
Notifications
4hosting.net
Hosting
4database.net
Databases
4buildsite.net
Website Builder
4myapp.net
App Builder
4avatars.net
AI Avatars
4chaty.net
AI Chatbot
4webagency.net
Web Agency Software
4softedu.net
Education Websites
4softcrm.net
CRM Platform
4softerp.net
ERP System
4softhr.net
HR Management
4mystaff.net
Staff Portal
4myprojects.net
Project Manager
4mycontracts.net
Contracts
4docs.net
Document Management
4appointments.net
Appointments
4marketingonline.net
Marketing
4insurance.net
Insurance
4property.net
Real Estate
4lawyers.net
Legal Software
4mygarage.net
Auto Service
4driving.net
Driving Schools
4fleet.net
Fleet Management
4myevents.net
Events
4therapy.net
Therapy
4clinics.net
Clinics
4dental.net
Dental Practices
4restaurants.net
Restaurants
4beautify.net
Beauty Salon
4gym.net
Fitness Gyms
4guards.net
Security Companies
4softvet.net
Veterinary Clinics
4softauto.net
Automotive Business Software
4construct.net
Construction Companies
4marketplace.net
Marketplace
4shopy.net
Online Store
4pricing.net
Price Comparison
4salefood.net
Food Delivery
4rentify.net
Rentals
4transports.net
Transport
4agencytravel.net
Travel Agency
4hotel.net
Hotel Management
4ong.net
NGO Management