Overtime

I don’t know how this old wife’s tale started to circulate in South Africa but the calculation of overtime pay has always been an issue, especially for payment for public holidays. The BCEA states that payment for work on such a public holiday shall be at 2X the normal hourly rate.


A client of ours was paying 2x plus the normal pay a worker would be paid for the day. Obviously, it worked out a 3 x the normal hourly rate. What a waste of money and very difficult to change as it has now become a practice in the workplace that employees will be paid like this on public holidays.


Use this formula if you want to convert and calculate monthly pay to hourly pay:
Salary * 3/13 = week pay. Then divide by number of days worked, i.e. 5.
R 3000 * 3 = 9000/13 = 692.30 /5 = R 138.46 day rate. Divide by number of hours to get hourly rate, for example 8 hours = R 17.30


Make sure your payroll is set up properly and that your wage staff understands what they do.