Overtime Rules for Employers: Rates, Limits and the Agreement Trap
Few BCEA topics generate more payroll errors than overtime rules — who qualifies, what it pays, and the persistent myth that a salary ‘includes’ it. The rules are short but precise, and the errors compound monthly until an inspection or dispute totals them up with interest.
- ✔Ordinary hours: 45 a week maximum before overtime starts.
- ✔Overtime pay: 1.5 times the normal hourly rate, or time off by agreement.
- ✔Limits: 3 hours a day, 10 hours a week — and overtime is by agreement, not command.
- ✔Above the BCEA earnings threshold, overtime provisions fall away.
The 45-hour line: when overtime rules kick in
Ordinary working hours cap at 45 a week: 9 hours a day for a five-day week, 8 hours a day for a six-day week (working hours guide). Work beyond those lines is overtime — and the first rule is that overtime is by agreement: an employer may not simply instruct unlimited overtime, and an agreement to work it is usually built into the contract, capped at 3 hours a day and 10 hours a week.
For employees below the BCEA earnings threshold, overtime must be paid or given as time off — an all-inclusive salary clause does not extinguish the entitlement. Either the salary demonstrably covers the overtime worked at the required rates, or the balance is owed.
What overtime pays: the rates table
| Work | Rate |
|---|---|
| Overtime (beyond ordinary hours) | 1.5 × normal rate |
| Overtime by time-off agreement | Paid time off instead (BCEA formula) |
| Sunday — not ordinarily worked | 2 × normal rate |
| Sunday — ordinarily worked | 1.5 × normal rate |
| Public holiday worked | 2 × normal rate (or day + day off) |
The Sunday and public-holiday rules trip up retail and hospitality payrolls most — the rate depends on whether the day is *ordinarily worked* in that employee’s pattern, which rosters must evidence. The full breakdown is in Sunday and public holiday pay.
Who is excluded from overtime rules
Two exclusions matter. Employees earning above the BCEA earnings threshold (adjusted periodically — check the current figure when budgeting senior salaries) fall outside the hours-and-overtime chapter entirely: no statutory overtime premium, whatever the hours. And senior managerial employees plus certain travelling and emergency workers carry their own exclusions. Everyone else — including salaried staff below the threshold — is covered.
The compliance routine is simple: record hours (the BCEA requires it), apply the right rate per day-type, and reflect premiums transparently on the payslip (payslip rules). Admin Boss’s free payslip generator applies the rates automatically. The wider framework is in the hiring pillar guide.
Always confirm current requirements with the official source — rules and deadlines change.
- ✔Monthly PAYE/UIF/SDL calculations & EMP201 filing
- ✔Payslips and payroll records handled
- ✔Request a quote for your team size
Frequently asked questions
How many hours can an employee work before overtime?
45 ordinary hours a week — 9 a day on a five-day week or 8 a day on a six-day week. Beyond that, overtime applies: by agreement, capped at 3 hours a day and 10 hours a week, paid at 1.5 times the normal rate.
Can I force employees to work overtime?
No — overtime requires agreement, usually captured in the employment contract, and stays within the BCEA caps. Compulsory unlimited overtime is not lawful, and working beyond the caps invites compliance orders.
Do salaried employees get overtime pay?
Below the BCEA earnings threshold, yes — salary does not extinguish overtime entitlement unless it demonstrably covers overtime at statutory rates. Above the threshold, the overtime provisions do not apply.
Last reviewed: July 2026 · How we research our guides
EmployerGuide.online provides general information about South African employer obligations — not legal, tax or professional advice for your specific situation. Laws, rates and deadlines change; confirm current requirements with the official sources linked above, or ask Admin Boss. See our disclaimer.