The Floor · Taiwan
OVERTIME
How to calculate overtime legally: weekday, flexible rest day and mandatory rest day, fully broken down
The short answer: overtime in Taiwan depends on which kind of day it falls on. On a weekday the first 2 hours are about 1.34 times and further hours about 1.67 times. Flexible rest days, mandatory rest days and public holidays carry higher rates and their own rules. These are the commonly cited figures, but the Labour Standards Act and the authorities' announcements are the final word.
This article is general education, not legal advice. Actual rates and calculations vary by case. Rely on the Labour Standards Act and the authorities' announcements, and consult a professional.
1. Weekday overtime
When staff work beyond their normal hours on a weekday, the extra hours are overtime. The common method is that the first 2 hours are paid at about one-third more per hour, roughly 1.34 times, and hours beyond that at about two-thirds more, roughly 1.67 times.
A worked example
Say the normal hourly wage is NT$200 and the worker does 3 hours of overtime. The first 2 hours are about 200 x 1.34 = 268 per hour, so about 536 for two hours. The third hour is about 200 x 1.67 = 334. The day's overtime is about 870. This is only an illustration. For the real figure, follow the law and the correct rounding.
2. Flexible rest day work
Working on a flexible rest day usually carries a higher rate than weekday overtime, because that day should be the worker's rest time. The wage is calculated in segments by hours worked, each with a different added rate. Because the per-segment detail is fine-grained and changes with the law, rely directly on the Labour Standards Act and the authorities' announcements, and confirm with a professional.
3. Mandatory rest days and public holidays
The mandatory rest day, as a rule, cannot be worked. Staff may work it only under the specific legal circumstances, and then you must add wages and give compensatory leave. On a public holiday, if the worker agrees to work, the wage must be doubled by law. Both carry particular payment standards, so follow the Labour Standards Act and the authorities' announcements, and consult a professional for your case.
4. Why hand calculation is risky
The problem is not that the multipliers are hard. It is that you first have to classify correctly which hours are weekday overtime, which are rest-day work, and which segment those hours fall into. For a multi-branch chain with hundreds of people, classifying and multiplying by hand every month is where mistakes happen most, and an overtime mistake is a direct breach of the law.
Correct overtime starts with correctly counted hours, not with a month-end guess.
WorkCo calculates each person's hours and overtime from the shifts actually sent, and exports a report for accounting to continue with, cutting the month-end manual sorting and multiplying. But the system is only a tool. Choosing the correct rate, interpreting the law and the responsibility to pay remain with you and your advisers. Always follow the Labour Standards Act and the authorities' announcements.
THE REAL SCREEN · PAYROLL
Hours and overtime are calculated from the shifts actually sent, rather than added up by hand at the end of the month.
Frequently asked questions
How is weekday overtime calculated?
For weekday overtime, the common method is that the first 2 hours are paid about one-third more per hour, roughly 1.34 times, and hours beyond that about two-thirds more, roughly 1.67 times. Example: at an hourly wage of NT$200, the first 2 hours are about 268 an hour and the third hour on is about 334 an hour. For the actual rates and method, follow the Labour Standards Act and the authorities' announcements, and confirm with a professional.
Is flexible rest day overtime the same as a weekday?
No. Working on a flexible rest day usually carries a higher rate than weekday overtime, because that day should be the worker's rest time. The wage is calculated in segments by hours worked, each with a different added rate. Because the segments are fine-grained and change with the law, rely directly on the Labour Standards Act and the authorities' announcements, and confirm with a labour-law professional.
How are mandatory rest days and public holidays calculated?
The mandatory rest day, as a rule, cannot be worked, and only under specific legal circumstances, in which case you must add wages and give compensatory leave. On a public holiday, if the worker agrees to work, the wage must be doubled by law. Both carry particular payment standards, so follow the Labour Standards Act and the authorities' announcements, and consult a professional for your case.
Are the overtime multipliers fixed?
The 1.34 and 1.67 figures in this article are commonly cited, but real application varies with the situation, the flexible working-hour scheme and the authorities' latest announcements. Overtime is not a permanently fixed number. When calculating, follow the Labour Standards Act and the authorities' announcements, and confirm your case with a professional, so you do not breach the law by applying an outdated or inapplicable rate.
Can a system calculate overtime automatically for me?
It can help, but you still need to confirm. WorkCo calculates each person's hours and overtime from the shifts actually sent and exports a report for accounting to continue with, cutting month-end errors from manual sorting and multiplying. But the system is only a tool. Choosing the correct rate, interpreting the law and the responsibility to pay remain with you and your advisers, and you should follow the Labour Standards Act and the authorities' announcements.
Get the hours right at the source
WorkCo calculates hours and overtime from the shifts actually sent, and produces a report ready for accounting. WorkCo is free in Taiwan up to 20 employees, so you start in LINE.