Labor Standards Act overtime pay calculation: seven tips to avoid wage deductions

In Taiwan's workplace, overtime has become a daily routine for office workers. However, many people do not understand Labor Standards Law Regulations and disputes over salary deductions. This article will analyze the calculation basis of the labor standards law for overtime pay and provide seven tips to help office workers protect their salary rights and avoid losses due to incorrect calculations.

A complete analysis of the labor standards law on overtime pay

In Taiwan's workplace, "overtime" has become a daily routine for many office workers.According to the Labor Standards Act, as long as the working hours exceed the statutory working hours, the employer must pay overtime pay according to the law.. However, in practice, disputes over overtime pay such as wage deductions, underpayment, and arrears arise frequently due to a lack of understanding of the regulations.Correctly understanding the compensation standards of the "Overtime Pay Labor Standards Act" is the first step to protecting your own salary rights.

What is overtime and legal working hours limits?

The Labor Standards Act defines normal working hours as:

• Maximum 8 hours per day
• Maximum 40 hours per week

Any working hours exceeding the above standards are considered overtime and must be paid separately in accordance with the "Overtime Pay Labor Standards Act" rules.

Labor Standards Act Overtime Pay Calculation Basis

When calculating overtime pay, the basis is the total of "base salary + regular allowance", not just basic salary.

Seven tips to avoid having your overtime pay deducted

Overtime pay can easily be underestimated or deducted by mistake, resulting in hard work not being fully reflected in wages.Grasp the following seven tips to ensure that your rights under the Labor Standards Act on Overtime Pay are not compromised:

1. Keep attendance and overtime records

Whether it is a sign-in card, APP, clock-in or paper record, the details of overtime hours are fully retained.In case of any dispute with the company, you will have evidence to follow to protect your own rights and interests.

2. Check whether the company’s overtime calculation basis is correct

The basis for calculating overtime pay must include all regular salaries, including basic salary, allowances, full attendance bonuses, etc.If the company only calculates based on the basic salary, it is clearly illegal.

Beware of traps: Bonuses that are given infrequently (such as annual performance bonuses) are not included in the calculation.

3. Overtime pay should be calculated minute by minute, not the entire period.

The Labor Standards Act stipulates that overtime pay must be calculated based on the actual number of minutes worked.(For example: 20 minutes of overtime is counted as 20/60 hours); the situation of "not paying overtime pay for less than one hour" is prohibited.

4. Clearly distinguish between the calculation standards for weekdays, rest days, and statutory holidays

The compensation multiples for overtime work on different days vary greatly.Pay attention to which type of overtime you work so that you can get reasonable compensation:

For example: Even if workers only work 2 hours on national holidays, they must still be paid for 8 hours of work on that day. The calculation cannot be based on actual working hours.

5. Workers have the right to choose overtime pay or compensatory leave

The Labor Standards Act clearly stipulates that "compensatory leave" can only replace overtime pay with the consent of the workers.The company cannot force employees to "only receive compensatory leave but not overtime pay" and it is illegal without consent.

6. Check salary details regularly and make overtime pay calculations transparent

Monthly pay slipThe calculation details of overtime pay should clearly state the working hours and multiples. If any discrepancy is found, please report it to the Human Resources Department orLabor Bureaureaction.

7. Be willing to use labor grievance channels when disputes arise

Once you encounter unreasonable salary deductions/refusal of overtime pay,You can file a complaint with the Labor Bureau after collecting evidence, or report to the Labor Inspection Office, and the government will deal with it according to law.

Common QA Analysis on Labor-Based Method for Calculating Overtime Pay

Overtime Pay Calculation Case Study

Assume that Xiaohua's monthly salary is 36,000 yuan (including basic salary, transportation and food allowances), and the monthly overtime is as follows:

Labor Standards Act Overtime Pay Error Examples

Quick overtime pay calculation tool and advice

HR and accounting often worry about calculating overtime pay every month. It is recommended to use an automated overtime pay calculation system, e.g.Cloud HR System, can automatically identify the working time calculation standard,Effectively prevent manual calculation errors and reduce labor disputes.

Summary of common overtime pay calculation formulas

Protect yourself and take the initiative to learn how to calculate overtime pay under the Labor Standards ActOffice workers should not allow their hard work to be easily exploited. masterComplete attendance records,Salary details review,Correct calculation of overtime hoursThese seven tips, combined with a full understanding of the "Overtime Pay Labor Standards Act", will effectively avoid the risk of wage deductions. Don’t be afraid if you encounter disputes, and bravely seek assistance from the Labor Bureau. To protect your labor rights, start by understanding the calculation of overtime pay under the Labor Standards Act and make your efforts pay off.