Calculating the cost of an hour of work for overtime pay

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To understand how to pay for overtime, you need to calculate the cost of an hour of work. In practice, several methods are used for this.

Method No. 1. Calculating the cost of an hour of work depending on the monthly working time standard
Hourly rate = salary / number of hours worked in a month.

This approach assumes that the cost per hour of work varies in different months.

For example, an employee’s salary is 27,000 rubles.

Hourly rate in January: RUB 27,000/136 h = RUB 198.5.

July hourly rate: RUB 27,000 / 184 h = RUB 146.7.

The difference exceeds 30%.

Method No. 2. Calculating peru email list the cost of an hour of work taking into account the average monthly number of hours of work per year
Hourly rate = salary / average monthly working hours per year.

The calculation using this method is recommended by the Russian Ministry of Health in its letter dated 02.07.2014 No. 16-4/2059436. This approach equalizes the hours that a person worked in different months.

If an employee's workweek is 40 hours, then in 2019 the average number of working hours per month is determined as follows:

1970 hours / 12 months = 164 hours

The hourly rate of the employee from our example in any month is:

27,000 rub. / 164 hours = 164.6 rub.

Method No. 3. Calculating the hourly rate based on the standard working hours according to the schedule
Hourly rate = sum of annual salaries / standard working hours according to the schedule.

This calculation method is set out in the Decision of the Supreme Court of the Russian Federation dated 21.06.2007 in case No. GKPI-07-516. This transition is good, since it takes into account the increase in salary over the year.

Method No. 3. Calculating the hourly rate based on the standard working hours according to the schedule

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However, this calculation method has a serious drawback: it takes into account only salaries. There are cases when employers were punished by GIT inspectors for underpaying employees for overtime if their salaries were significantly lower than the minimum wage, and the employee's salary consisted of a percentage of sales. So, in order to avoid a fine, it is better to calculate not the total salaries, but the actual fee with all additional payments.

Each calculation method can be applied quite successfully, and none of them can be called a standard, since the calculation procedure is not prescribed in the legislation of the Russian Federation. The employer has the right to choose any method taking into account the specifics, to prescribe the method of calculating working hours in a local act, an agreement with an employee or a team.