{"id":712,"date":"2023-06-17T02:25:16","date_gmt":"2023-06-17T02:25:16","guid":{"rendered":"https:\/\/mudabicara.com\/en\/?p=712"},"modified":"2023-06-17T02:25:16","modified_gmt":"2023-06-17T02:25:16","slug":"what-is-overtime-definition-rules-how-to-calculate-it","status":"publish","type":"post","link":"https:\/\/mudabicara.com\/en\/what-is-overtime-definition-rules-how-to-calculate-it\/","title":{"rendered":"What is Overtime? Definition, rules, how to calculate it"},"content":{"rendered":"<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">You are certainly no stranger to the term overtime. <\/span><span style=\"vertical-align: inherit;\">However, it turns out that there are still many who do not understand the correct calculation of overtime.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Both from the calculation of hours and wages. <\/span><span style=\"vertical-align: inherit;\">In fact, not a few employees also do not understand the nature of overtime itself, whether it is mandatory or not.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Not infrequently, companies take advantage of employee ignorance to issue wages with a minimum value and impose overtime beyond the provisions, even though\u00a0 the <\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">employee&#8217;s <\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">performance<\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> \u00a0has the right to be compensated.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0 <a style=\"color: #ff0000;\" title=\"Permalink to: Sales Returns Vs Purchase Returns in Accounting\" href=\"https:\/\/mudabicara.com\/en\/sales-returns-vs-purchase-returns-in-accounting\/\" rel=\"bookmark\">Sales Returns Vs Purchase Returns in Accounting<\/a><\/strong><\/span><\/pre>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So, to avoid fraud, let&#8217;s understand what overtime is and how overtime is calculated based on the Job Creation Law.<\/span><\/span><\/p>\n<h2><span id=\"Definisi_Lembur\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Definition of Overtime<\/span><\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">When are working hours included in overtime? <\/span><span style=\"vertical-align: inherit;\">How much is the wage?<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Maybe the above questions represent your curiosity. <\/span><span style=\"vertical-align: inherit;\">Therefore, we present a complete explanation.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Based on the Ministry of Manpower regulations regarding manpower, namely Law number 13\/2003, article 77 paragraph 2 a&amp;b, working hours are 7 hours per day and 40 hours a week in 6 working days.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So, when you work more than the agreed or specified working hours, that includes overtime.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">That is, you are entitled to get overtime pay from the company.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">However, the above working hour regulations are not fully compatible with all industries, companies or certain positions with high salaries.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Therefore, companies in certain business sectors can make their own policies regarding working hours.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">With notes, adjusted for the salary given, written and agreed upon by the company and employees.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Regarding the calculation of overtime, the Ministry of Manpower and Transmigration has decided.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Where, in the decision said, that workers who are entitled to receive overtime pay are:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Those who work more than seven hours a day and forty hours a week in six working days<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Workers who work more than eight hours a day and forty hours a week in five working days<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Those who still work on Sundays or public holidays<\/span><\/span><\/li>\n<\/ul>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<a style=\"color: #ff0000;\" title=\"Permalink to: What is Equity? Definitions, Components, Formulas, and Examples\" href=\"https:\/\/mudabicara.com\/en\/what-is-equity-definitions-components-formulas-and-examples\/\" rel=\"bookmark\">What is Equity? Definitions, Components, Formulas, and Examples<\/a><\/strong><\/span><\/pre>\n<h2><span id=\"Aturan_Lembur\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Overtime Rules<\/span><\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Companies are allowed to apply overtime to employees. <\/span><span style=\"vertical-align: inherit;\">However, that does not mean there are no fixed regulations from the government for its implementation.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">There is a change in the rules regarding employee overtime, namely in PP number 35\/2021, article 26 paragraph 1 which is included in the Job Creation Law.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to the Job Creation Law, overtime hours may not be more than three hours a day or fourteen hours a week.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">As a form of policy for the company, a maximum limit of overtime hours is set at four hours a day and 18 hours a week.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The provisions of article 1 above do not apply to overtime on weekly holiday schedules or statutory holidays.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Regarding the company&#8217;s obligations to employees regarding overtime work, the Job Creation Law also regulates this clearly and in detail.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In article 29, it is stated that companies are required to pay overtime wages to employees according to the correct overtime calculation.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In addition, companies must also provide sufficient rest opportunities, and provide food and drinks equivalent to 1,400 Kcal.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Provision of food and drink when overtime exceeds four hours and this obligation must be fulfilled and cannot be replaced in the form of money.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Regarding the amount of overtime pay, Article 31 of Ciptaker&#8217;s overtime calculation states:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The overtime pay for the first overtime hours is 1.5 times the hourly wage<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In subsequent hours of overtime work, it is increased to twice the hourly wage<\/span><\/span><\/li>\n<\/ul>\n<pre><strong><span style=\"color: #ff0000;\">Read Also :\u00a0<a style=\"color: #ff0000;\" title=\"Permalink to: What is Reimbursement? Definition, Types, and practice\" href=\"https:\/\/mudabicara.com\/en\/what-is-reimbursement-definition-types-and-practice\/\" rel=\"bookmark\">What is Reimbursement? Definition, Types, and practice<\/a><\/span><\/strong><\/pre>\n<h2><span id=\"Perhitungan_Lembur\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Calculation of Overtime<\/span><\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">To make it easier to understand, you can use the overtime calculation formula as follows:<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Overtime pay = number of overtime hours x multiplier according to the Ciptaker Law x 1\/173 x wages or salary per month<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">From the formula above, you may be confused about the origin of the number 173. This number is the total hours you work in one month.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In one week, you work 40 hours and in a year you work 52 weeks.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So, to calculate the hours worked per month, divide 52 weeks by 12 (number of months in a year). <\/span><span style=\"vertical-align: inherit;\">The result is 4.33, then multiplied by 40 hours, the result is 173.2, rounded up to 173.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In the first hour of overtime, multiplied by 1.5 of the wages for 1 hour worked. <\/span><span style=\"vertical-align: inherit;\">So, for example, for the first 3 hours of overtime with a salary of 5 million per month, the overtime pay is: <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3 x 1.5 x 1\/173 x 5,000,000 = 130,057 rounded up to 130 thousand.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">If there is still overtime on the second day and so on, then the multiplier increases from 1.5 to 2.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The calculation is different, if you have to work overtime on Sunday.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The way to calculate Sunday overtime is if you work five working days a week, overtime will be paid twice an hour out of 8 hours of work.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This overtime calculation<\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> \u00a0applies to overtime in the first eight hours. <\/span><span style=\"vertical-align: inherit;\">At the ninth hour, it will be multiplied by three and at 10-11 o&#8217;clock it will be multiplied by four.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<a style=\"color: #ff0000;\" title=\"Permalink to: What is Dropshipping? Definition, How it Works, Advantages and Weaknesses\" href=\"https:\/\/mudabicara.com\/en\/what-is-dropshipping-definition-how-it-works-advantages-and-weaknesses\/\" rel=\"bookmark\">What is Dropshipping? Definition, How it Works, Advantages and Weaknesses<\/a><\/strong><\/span><\/pre>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">But if you work six days a week, then the first seven hours of overtime are multiplied by 2, the eighth hours are multiplied by three, while the 9-10 hours are multiplied by four.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Regarding the monthly salary that is used as a multiplier, if you have a fixed allowance then the salary is written 100%.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">However, if the benefits you get are not fixed, then the total salary per month to multiply is only 75%.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The obligations mentioned above must actually be carried out by the company. <\/span><span style=\"vertical-align: inherit;\">Companies can also use\u00a0 <\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">the attendance management application<\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> \u00a0to help them calculate the working hours of each overtime employee.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">If the company defaults on this responsibility, it will be subject to fines or criminal sanctions.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This refers to the Ciptaker Law number 11\/2020, article 187 paragraph 1 &amp; 2.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">It is stated there, if the company does not pay overtime wages, it will be subject to imprisonment for a minimum of one month and a maximum of 12 months.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In addition, a minimum fine of 10 million rupiah and a maximum of 100 million rupiah can also be imposed. <\/span><span style=\"vertical-align: inherit;\">Of course this will be more detrimental to the company than paying overtime wages.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So that there are no misunderstandings between the company and employees, it is ideal to hold overtime accompanied by the following things.<\/span><\/span><\/p>\n<ul>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Written and official overtime certificate from the company and approved by the employee<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Include in detail the name of the employee who is overtime, the purpose, the length of overtime hours and the nominal wage<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Authorized with the signature of the company and employees in accordance with the provisions of the Ministry of Manpower and Transmigration<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">With the evidence or written agreement, neither the employee nor the company can walk away from their obligations.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In certain situations, such as the condition of a company that is almost bankrupt, the overtime calculation may be slightly different because it adjusts to the conditions of the company.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">But everything can still be run, as long as there is an agreement. <\/span><span style=\"vertical-align: inherit;\">If there is no emergency situation, the calculation of overtime pay must be in accordance with the provisions.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<a style=\"color: #ff0000;\" title=\"Permalink to: What is Trial Balance? Definition, Purpose, Types, and How to Arrange It\" href=\"https:\/\/mudabicara.com\/en\/what-is-trial-balance-definition-purpose-types-and-how-to-arrange-it\/\" rel=\"bookmark\">What is Trial Balance? Definition, Purpose, Types, and How to Arrange It<\/a><\/strong><\/span><\/pre>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">As an employee, you must understand everything about this overtime calculation. <\/span><span style=\"vertical-align: inherit;\">That way, the energy you expend, can get a commensurate award or reward.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Both you and the company benefit from having a clear overtime agreement that complies with government regulations. <\/span><span style=\"vertical-align: inherit;\">This of course can also prevent\u00a0 <\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">employee turnover<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You are certainly no stranger to the term overtime. However, it turns <a class=\"read-more\" href=\"https:\/\/mudabicara.com\/en\/what-is-overtime-definition-rules-how-to-calculate-it\/\" title=\"What is Overtime? Definition, rules, how to calculate it\" itemprop=\"url\"><\/a><\/p>\n","protected":false},"author":2,"featured_media":713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[167,166,190],"class_list":{"0":"post-712","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economic","8":"tag-employees","9":"tag-on-the-job-training","10":"tag-overtime"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Overtime? 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