Overtime must be calculated on the basis of the employee’s entire salary. Previously, the rules allowed overtime to be calculated on the basis of salary or wage rate only.
However, last year judges pointed out that an employee should receive more for overtime work than for work under normal conditions (Article 152 of the Labor Code). Therefore, when calculating the additional payment, not only the salary, but also other payments, which are permanent in nature, are already taken into account (Resolution of the Constitutional Court No. 35-P of 27.06.2023, paragraph 13 of the Review of the Constitutional Court Practice for the 2nd quarter of 2023). Variable payments do not need to be taken into account. So far, the rules are as follows. Only the salary payment should be increased by one and a half or two times, and a single additional payment should be calculated from other payments. But from September 1, the rules will change once again.
The Constitutional Court obliged lawmakers to change the rules of overtime pay. The law has already been adopted. Moreover, deputies have proposed that overtime work should be paid at an increased rate on the basis of the employee’s entire salary.
In any case, in calculating overtime, do not take into account additional payments for working conditions outside the norm, i.e. for working on a day off, at night, etc. And the regional coefficient and percentage bonuses for “northern” length of service should be charged on the entire amount of salary, which already includes overtime pay. Also, do not take into account one-time and non-labor payments – material aid, dividends, compensation.
Document: Federal Law No. 91-FZ of 22.04.2024. The new version of Article 152 of the LC will come into force on September 1, 2024.
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