Mandatory wage supplements arise whenever work is performed outside normal working hours, at night, on a weekly rest day, or on a public holiday. They do not depend on the parties' agreement and cannot be contractually waived. The Labor Code sets only the minimum threshold: no less than 20 percent for evening hours and up to 50 percent for holiday overtime. A collective agreement may provide more, never less.
This page shows how much each surcharge is, which provision it is based on, when it can be replaced with a grace period, and within which timeframe.
Read also: Payroll and Contributions: The Complete Guide
The Code recognizes six instances in which an addition arises automatically, without the need for a special agreement.
| Case | Minimum add-on | Article |
|---|---|---|
| Extra hours beyond the regular schedule | 25% | 91, point 1 |
| Extra hour off on a weekly break or holiday. | 50% | 91, point 3 |
| Work from 7:00 PM to 10:00 PM | 20% | 81 |
| Work from 10:00 PM to 6:00 AM | 50% | 81 |
| Work on the weekend | 25%, or substitute break | 87, point 1 |
| Work on official holidays | 25%, and paid leave | 87, point 2 |
Note the last two lines. For the weekly rest day the law provides a choice, whereas for the public holiday it requires both.
Every overtime hour is measured against the regular schedule. Article 78 sets the normal daily working time at no more than 8 hours, while Article 83 sets the normal weekly working time at no more than 40 hours.
Between two workdays, the employee is entitled to a daily rest period of at least 11 consecutive hours. For minors under 18, the daily working time does not exceed 6 hours.
The weekly rest period shall be no less than 36 hours, of which 24 hours shall be uninterrupted, and shall include Sunday. This is Article 85.
Read also: Work schedule, daily and weekly limits
Article 88 defines overtime as any hour of work performed beyond the normal daily working time or the maximum weekly working time.
Article 91, paragraph 1, provides for overtime. When overtime hours are not compensated by rest, the employer pays the regular rate plus at least 25 percent. The collective agreement may provide for more.
When overtime is worked on a weekly rest day or a public holiday, the premium is not 25 but no less than 50 percent. This is point 3 of the same article.
An employee earning 90,000 LEK per month works six extra hours during the month, during the day, on a regular workday. With 174 work hours per month, his hourly rate is about 517 LEK. The six extra hours are paid at 517 LEK plus 25 percent, so about 646 LEK per hour, totaling around 3,876 LEK.
If they had been carried out on Sunday, the same work would have been paid at a 50 percent premium, i.e., about 776 LEK per hour and about 4,656 LEK in total.
Article 90 imposes certain restrictions that are often overlooked.
First, the maximum number of overtime hours is set in the collective bargaining agreement or in the individual employment contract, and in no case does it exceed 200 hours per year. If neither contract specifies it, the employer has no basis to rely on.
Secondly, additional hours cannot be requested once the employee has already worked 48 hours in that week. Weekly overtime is allowed for periods of up to four months, provided that the weekly average for that period does not exceed 48 hours.
Third, overtime is prohibited for pregnant women and until the child turns one year old, as well as for persons with disabilities when justified by the degree of their disability and the nature of the work.
Fourth, in cases of force majeure or urgent work in the public interest, the limit may only be exceeded with authorization from the Labor Inspectorate.
Caution: Many contracts only state that the employee may work overtime as needed. That is not enough. When the inspector asks for the basis of the overtime hours and it is found in neither the contract nor the collective bargaining agreement, the violation is the employer's, not the employee's.
Article 80 defines night work as work performed from 10:00 PM to 6:00 AM. It may not exceed eight consecutive hours and must be immediately preceded or followed by the daily rest period.
Article 81 provides for two different appendices, which are often confused with each other.
These supplements also apply when the work is within normal working hours. It is not necessary for the hour to be overtime; it is enough that it falls within the interval.
Read also: Overtime and night work, full regulations
Article 86 states clearly. On official holidays, work is prohibited and the employee is entitled to pay for those days. Exceptions are allowed only by a subordinate legislative act or by a collective agreement.
When the work is carried out anyway, Article 87 applies, which distinguishes between the two cases and does not treat them the same.
Point 1 provides a choice: either a pay increase of no less than 25 percent, or paid leave equal to the time worked plus an additional leave of no less than 25 percent of that time.
Point 2 does not offer a choice. It requires both at the same time: a pay increase of no less than 25 percent and paid leave equal to the duration of the work performed. The leave may be taken one week before or one week after.
Note: The difference between item 1 and item 2 is the word "or" versus the word "and." For weekly leave, the parties choose. For public holidays, both a premium and leave are granted. This is one of the most common errors in payroll.
When an official holiday falls on a weekend, the holiday is postponed to Monday, in accordance with Article 86, paragraph 2.
Read also: Official holidays and how they are handled on the payroll
Article 91, paragraph 2, allows overtime hours to be compensated with time off instead of payment. There are two conditions.
The rest period must be at least 25 percent longer than the hours worked. Thus, four additional hours result in at least five hours of rest.
It must be granted within two months from the date the work is performed, except in cases where the collective agreement provides otherwise. If the deadline passes without the leave being granted, the obligation to pay under paragraph 1 remains.
For the weekly rest day and for the official holiday, the deadline is shorter. Article 87, paragraph 3, requires that the leave be taken within one week before or after.
Note: Compensated time off cannot be imposed unilaterally by the employer. It requires an agreement with the employee. In practice, a signed note indicating the hours worked, the hours of leave granted, and the date is sufficient.
These days are entered in the same register where annual leave is recorded, because otherwise the deadlines can't be met.
Read also: Leave Register and What Section 95 Requires
Every allowance is included in the gross salary, so taxes are also calculated on it. Social contributions and payroll taxes and it should be reflected in Monthly employee and payroll report. A miscalculated addition is repeated at all three levels.
Not less than 25 percent above the regular rate of pay, in accordance with Article 91(1). When overtime hours are worked on a weekly rest day or a public holiday, the premium is not less than 50 percent.
From 10:00 PM to 6:00 AM, under Article 80, the surcharge for this interval is no less than 50 percent. For the hours from 7:00 PM to 10:00 PM, the surcharge is no less than 20 percent.
Yes, by agreement with the employer. The leave must be at least 25 percent longer than the hours worked and granted within two months.
The limit is set in the collective or individual contract and does not exceed 200 hours per year. In any case, additional hours are not required when the employee has already worked 48 hours in that week.
A wage supplement of no less than 25 percent and paid leave equal to the hours worked. Both together, pursuant to Article 87, paragraph 2.
Yes. Article 86 prohibits work on official holidays and recognizes the right to pay for those days.
Either a premium of at least 25 percent, or time off equal to the hours worked plus 25 percent extra time, to be taken within one week before or after.
Yes. Overtime is calculated based on the agreed schedule and legal limits. Night work and holidays are treated the same, regardless of how many hours the employee works per week.
No. The allowances are statutory minimums, and any clause that removes them or includes them in the wage becomes invalid. What is allowed is a wage above the minimum that covers the allowances, but only if the calculation can be demonstrated.
