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Working overtime in any industry is sometimes unavoidable. As a business owner it’s important to make sure that you’re compensating your staff properly and making the correct tax deductions when they do need to work extra hours.

There are rules and regulations associated with workers’ hours and overtime pay that you need to be sure to follow closely.


Overtime is classified as any hours worked outside of your regular work schedule. Employees must be paid 1.5 times their usual rate if working extra hours from Monday to Saturday. If you need them to work on a Sunday or a public holiday then they are entitled to double their hourly rate.

It’s important to note that not all employees must be compensated for extra hours worked. Exempt workers include:

  • Senior management staff – According to labour law, these include CEOs and certain high level employees
  • Independent sales reps – These include employees who manage their own work times and schedules
  • Part-time employees – Any individual who works less than 24 hours a month. They have their own laws and regulations
  • Emergency workers – Firefighters, ambulance drivers, paramedics, and any form of rescue employee who is on call
  • Members of the National Force – This includes employees of the National Defence Force, Intelligence Agency or the South African Secret Service

Finer Details

In order to stay compliant with labour law, there are a few things that you should take note of when it comes to overtime:

  1. In order for an employee to work additional hours, there needs to be an agreement between them and the manager before the time
  2. Instead of extra pay, the worker can receive time off, provided it’s agreed upon between the two parties
  3. Overtime cannot exceed 10 hours a week or 12 hours a day. This is applicable for employees who work 45-hour weeks
  4. The number of extra hours must be stipulated in the employee’s payslip for that month and have the necessary tax deductions applied
  5. Employees can refuse to work overtime. Overtime can’t be refused if the circumstances leading to it were out of the employer’s hands


Law Abiding Employers

As QuickBooks offers accounting and payroll solutions, it’s easy to allocate and make the required deductions for overtime pay for your employees.

And, as Richard Branson says:

‘Clients do not come first. Employees come first. If you take care of your employees, they will take care of your clients.’

Pay your employees overtime or their monthly salaries on time, quickly, and easily with QuickBooks software.

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