【2025】How to calculate overtime pay on national holidays? 3 Important Steps to Avoid Common Mistakes

With the amendment to the Labor Standards Act in 2025 and the rise in awareness of labor-capital rights, many office workers and business owners are concerned about how to correctly calculate overtime pay on national holidays. When faced with wage disputes over holiday overtime, in addition to complying with laws and regulations, one must also master the calculation details to protect one's own rights and interests. Only by paying overtime pay correctly in accordance with the law can companies avoid subsequent labor disputes and workers can concentrate on their work without worries. The following article will explain in detail the standard process for calculating overtime pay on national holidays, and summarize common mistakes and risk avoidance points to help you not lose points in your labor rights in 2025!

Basic legal provisions on overtime pay on national holidays

Applicable regulations for overtime work on national holidays

According to Article 39 of the Labor Standards Act and related interpretations:

• In principle, national holidays are fully paid holidays. If employers require employees to go to work, they must obtain the workers' consent and must pay additional wages in accordance with the law.
• National holidays include: National Founding Day, Lunar New Year, February 28th Anniversary, Tomb-Sweeping Day, Labor Day and other statutory holidays.

Core Principles for Calculating Overtime Pay on National Holidays

National holiday overtime pay consists of two parts:

1. Full pay for national holidays
2. Overtime wages are doubled(Depending on the number of overtime hours, there are multiples higher than normal days)

The following table provides an overview of how to calculate overtime pay for national holidays in 2025:

Remark: In principle, workers can receive full pay even if they do not work on national holidays. Those who do work will receive overtime pay in addition to their basic salary, and no compensatory leave will be given.

Three steps to accurately calculate overtime pay for national holidays

Step 1: Correctly determine the base salary

What does the wage base include?

• When calculating overtime pay, "regular salary" must be used as the basis.
• Including basic salary, allowances, full attendance bonus,butExcludes non-recurring bonuses, overtime pay itself, birthday giftsetc. (See the explanation letter from the Ministry of Labor for details).
• Correct calculation of hourly wage formula:

Monthly salary ÷ 30 (days) ÷ 8 (hours) = Weekday hourly wage

Example calculation:
The basic monthly salary in 2025 is $28,590 yuan.
Hourly wage = $28,590 ÷ 30 ÷ 8 = $119.13 yuan (rounded to the second decimal place)

Step 2: Determine the actual overtime hours and the corresponding multiples

The overtime hours comparison table is as follows

• Regardless of whether it is 1 hour or 8 hours, 1 to 8 hours is only counted as one day's salary, but the actual payment is equivalent to "double salary".
• If the hours exceed 8 hours, overtime pay will be calculated progressively.

Step 3: Be careful to avoid common overtime pay mistakes

Common Mistakes & Remedies Checklist

1. Misusing the base salary to calculate other recurring benefits
   • → Full monthly recurring salary should be used.
2. Mistakenly treating 1-8 hours as segmented calculations and not paying double wages
   • → Regardless of whether you work overtime for 1 hour or 8 hours, you will be paid an extra day’s salary.
3. Failure to round up overtime hours in accordance with the law
   • → Overtime work (9th to 10th or 11th to 12th hours) must be paid in multiples.

Application examples and practical overtime pay calculation table

Assuming that the monthly salary of a worker is $36,000 yuan, and the total overtime hours on national holidays is 10 hours:

*This table is only an example and the actual salary structure should be adjusted according to the employer. *

Other overtime considerations and rights reminders

Can overtime work on national holidays be replaced with compensatory leave?

According to the law, compensatory time off cannot be used in place of overtime pay. This misunderstanding may lead to a dispute and the employer must pay in cash.

Penalties for Illegal Failure to Pay Overtime

Those who violate Article 39 and Article 24 of the Labor Standards Act may be fined between NT$20,000 and NT$1,000,000 by the competent authority and ordered to correct the violation within a specified period of time.

Tax considerations when receiving overtime pay

Overtime pay on national holidays must be included in comprehensive income taxHowever, workers can make deductions and reductions in accordance with relevant tax laws.

Additional Tips for Avoiding Overtime Pay Disputes on National Holidays

Management recommendations

• Establish a clear system for overtime application, approval and issuance.
• Overtime requires written consent or record, and the details shall be shown on the salary slip in accordance with the regulations.

Labour side suggestions

• Keep evidence of overtime application, consent or working time records.
• If payment is not made in violation of the law,You can ask for assistance or file a complaint with the Labor Bureau..

Q&A about overtime work on national holidays

Q: What should I do if I am forced to work on a national holiday but am not paid double pay according to the law?
A: You can collect evidence of overtime and file a complaint. The Labor Bureau will assist workers in fighting for their rights.

Q: If I only work overtime for 4 hours on a national holiday, how should the overtime pay be calculated?
A: The legal overtime pay is still one day's salary (i.e. double the salary for the day), even if the overtime is less than 8 hours.

Q: Is it valid if both employer and employee agree to use compensatory time off instead of overtime pay?
A: invalid! Overtime work on national holidays must be paid in cash when wages are paid and cannot be offset by compensatory time off.

Correctly calculating overtime pay on national holidays can not only protect the rights and interests of workers, but also save companies from huge fines and labor disputes. Regulations are becoming increasingly strict in 2025, reminding both workers and businesses to learn how to calculate according to formal formulas and develop the good habit of keeping proper records of working hours. If there are disputes regarding complex salary structures, compensatory leave and holiday working hours, it is recommended that you seek assistance from professional legal advisors to provide additional protection for your rights and interests.