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Overtime pay in South Africa — the BCEA rules employers get wrong

2026-08-08

Overtime disputes are among the most common CCMA referrals — and most of them start with an employer who didn't know the rules. Here they are, in plain language.

The basic rule: 1.5× normal pay

Under section 10 of the BCEA, overtime — time worked beyond the agreed ordinary hours — must be paid at at least 1.5 times the normal wage. Alternatives, by agreement: paid time off (90 minutes off per overtime hour) or normal pay plus 30 minutes' time off per hour.

  • Overtime is voluntary in principle — an employee must agree to it (usually in the contract), and can't be forced beyond the limits below.
  • Maximum: 10 hours of overtime a week, and no more than 12 hours of work in a day.

Sundays and public holidays

  • Work on a Sunday: 2× the normal wage (or 1.5× if the employee ordinarily works Sundays).
  • Work on a public holiday (only by agreement): at least double the daily wage.

Who is NOT protected

The overtime rules don't apply to employees earning above the BCEA earnings threshold (R261,748.45 per year from April 2025 — check the latest determination), senior managers, or genuine independent contractors. Above the threshold, overtime is whatever the contract says — which is why salary offers just above the threshold often quietly exclude overtime pay.

The payslip must show it

For employees paid by the hour, section 33 requires the payslip to show the ordinary and overtime hours worked and the rates — not just a lump sum. "Wages: R6,500" on a wage earner's payslip is non-compliant; "Ordinary: 160 hrs @ R37.50 · Overtime: 8 hrs @ 1.5×" is what the law wants.

Common employer mistakes

  • Paying overtime at 1× "by agreement" — you can't contract below 1.5×; such a clause is void.
  • Averaging it away informally — averaging ordinary hours over up to 4 months is allowed, but only through a collective agreement, not a handshake.
  • No written consent — get overtime agreement into the employment contract on day one.
  • Forgetting overtime is remuneration — PAYE, UIF and SDL all apply, and it flows into leave-pay and severance calculations.

The easy way

360books supports hourly-wage employees natively: set the hourly rate on the employee, capture the month's ordinary and overtime hours on the draft payslip, and it computes overtime at 1.5×, taxes it correctly, and prints the hours and rates on the payslip exactly as section 33 requires — alongside salaried staff in the same pay run, with the same automatic PAYE/UIF/SDL, IRP5s and bank payment file.

Put this into practice

360books is accounting, VAT and payroll built for South African businesses — with an AI CFO.

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