# Overtime Rules by Country: Thresholds, Premiums and Caps > Source: https://netray.co/tools/overtime-rules-by-country-reference > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A quick comparison of statutory overtime thresholds, premium rates and caps in major manufacturing countries, with caveats to verify locally. ## Category ehs-workforce ## Region Global ## Industry Manufacturing ## Audience - Plant HR - Plant manager - Payroll manager - Multinational HR ## Tool **Kind:** worksheet **Mode:** reference **Columns:** #### Country or state **Key:** country **Type:** text #### Normal hours limit **Key:** threshold **Type:** text #### Overtime premium **Key:** premium **Type:** text #### Overtime cap **Key:** cap **Type:** text #### Notes **Key:** notes **Type:** text **Rows:** **Country:** United States (federal FLSA) **Threshold:** 40 hours per week **Premium:** 1.5 times regular rate **Cap:** No federal cap for adults **Notes:** Applies to non-exempt staff. Regular rate includes many bonuses. Some states are stricter. **Country:** United States (California) **Threshold:** 8 hours per day and 40 per week **Premium:** 1.5 times over 8 per day, 2 times over 12 per day **Cap:** None stated **Notes:** Seventh consecutive day rules apply. Alternative workweek schedules change the daily rule. **Country:** Canada (Ontario) **Threshold:** 44 hours per week **Premium:** 1.5 times regular rate **Cap:** 48 hour weekly limit unless agreement **Notes:** Provinces differ. Overtime averaging agreements exist. **Country:** Mexico **Threshold:** 8 hours per day on day shift **Premium:** 2 times for up to 9 hours per week, then 3 times **Cap:** 3 hours per day, 3 times per week **Notes:** Federal Labor Law. Daily limits are shorter for night shifts. **Country:** Brazil **Threshold:** 44 hours per week **Premium:** At least 1.5 times **Cap:** 2 extra hours per day by agreement **Notes:** Collective agreements often set higher premiums. Compensation banks are allowed. **Country:** United Kingdom **Threshold:** 48 hour average week (opt-out possible) **Premium:** No statutory premium **Cap:** 48 hour average unless opted out **Notes:** Premiums come from contracts or collective agreements. **Country:** Germany **Threshold:** 8 hours per day, up to 10 with averaging **Premium:** No statutory premium **Cap:** Average 8 hours per day over 6 months **Notes:** Premiums set by collective agreements. Works councils have co-determination rights. **Country:** France **Threshold:** 35 hours per week **Premium:** 25 percent for hours 36 to 43, 50 percent from 44 **Cap:** 48 hours per week maximum, 44 average over 12 weeks **Notes:** Agreements can lower premium to a statutory minimum of 10 percent. **Country:** India (Factories Act 1948) **Threshold:** 9 hours per day and 48 per week **Premium:** 2 times ordinary rate of wages **Cap:** Quarterly caps set by state rules **Notes:** State rules and the new labour codes may change this. Verify the current position for your state. **Country:** China **Threshold:** 8 hours per day and 40 per week (standard) **Premium:** 150 percent weekday, 200 percent rest day, 300 percent statutory holiday **Cap:** 36 hours per month **Notes:** Rest day overtime can be replaced by time off. Comprehensive hours systems need local approval. **Country:** Japan **Threshold:** 8 hours per day and 40 per week **Premium:** 25 percent, 50 percent beyond 60 hours per month **Cap:** Set by the Article 36 agreement, with legal upper limits **Notes:** A labor-management agreement is required before overtime. **Country:** South Korea **Threshold:** 40 hours per week **Premium:** 50 percent **Cap:** 12 overtime hours, 52 total per week **Notes:** Night work after 10 pm adds a premium. **Country:** Singapore **Threshold:** 44 hours per week **Premium:** 1.5 times basic hourly rate **Cap:** 72 overtime hours per month **Notes:** Applies to covered employees under the Employment Act, subject to salary thresholds. **Country:** Vietnam **Threshold:** 8 hours per day and 48 per week **Premium:** 150 percent weekday, 200 percent weekly rest day, 300 percent public holiday **Cap:** 40 hours per month, 200 per year in most sectors **Notes:** Holiday premium excludes holiday pay. Some industries have a higher annual cap. **Country:** Philippines **Threshold:** 8 hours per day **Premium:** 25 percent extra on ordinary days **Cap:** No general statutory cap stated **Notes:** Rest day and holiday work has higher rates. **Country:** South Africa **Threshold:** 45 hours per week **Premium:** 1.5 times, 2 times on Sundays if not usual work day **Cap:** 10 overtime hours per week **Notes:** Basic Conditions of Employment Act. Agreements can vary some terms. **Country:** Saudi Arabia **Threshold:** 8 hours per day and 48 per week **Premium:** 150 percent of basic hourly wage **Cap:** Limited by total daily maximum hours **Notes:** Shorter hours during Ramadan for Muslim employees. **Country:** United Arab Emirates **Threshold:** 8 hours per day and 48 per week **Premium:** At least 25 percent, higher for night hours **Cap:** 2 overtime hours per day, 144 hours in three weeks **Notes:** Confirm current Labour Law provisions and free zone rules. **Country:** Australia **Threshold:** 38 ordinary hours per week **Premium:** Set by the applicable modern award **Cap:** Reasonable additional hours **Notes:** Penalty rates differ widely between awards and enterprise agreements. **Notes:** This table is general guidance for planning, not legal advice. Overtime law changes often and varies by state, sector, employee category and collective agreement. Confirm with local counsel or your payroll provider before applying any rate. ## Content **Intro:** Multi-site manufacturers and plants hiring in a new country need a fast view of how overtime is regulated. This table compares statutory thresholds, premiums and caps for major manufacturing countries and flags where you must check the local detail. **Sections:** #### How to use this table **Body:** Search by country or by keyword such as premium or cap. Use the threshold column to find when overtime starts, the premium column for the pay multiple, and the cap column to see maximum hours. Export the filtered rows to Excel to feed a labor cost model or a policy document for a new site. Always read the notes column because many countries let collective agreements or regional rules override the statutory default. #### What drives the differences **Body:** Countries define overtime on a daily basis, a weekly basis, or both. The United States federal rule is weekly only, California adds daily limits, and Mexico and India use daily limits with weekly checks. Premiums are either set by statute, as in China and Vietnam, or left to contracts and collective agreements, as in the United Kingdom and Germany. Caps exist to protect health, and are usually monthly or annual in Asia. **Bullets:** - Daily and weekly thresholds can stack - Rest day and holiday rates are usually higher - Exempt or managerial staff may be excluded - Compensatory time off is allowed in some countries only #### Using the figures in a cost model **Body:** To estimate cost, take base hourly pay, add the statutory premium and add employer-side charges that scale with pay, such as social contributions where they apply. A plant weighing overtime against a third shift should also include productivity and fatigue effects. If you run one pay system across countries, store the threshold and multiplier as configurable rules by country, not hard coded. #### Common mistakes **Body:** The most common error is applying one country's rule across a multinational group. Others include forgetting that the regular rate for overtime may include bonuses, treating salaried managers as automatically exempt, and ignoring caps that apply regardless of worker consent. Always confirm whether the rule applies to the worker category and sector in question. **Cta:** If your ERP payroll or time module needs overtime rules configured by country, we can help document the rule set and test it against your own timesheet data. **Faq:** #### Which country has the highest statutory overtime premium? **Answer:** Among the countries listed, China and Vietnam reach 300 percent on statutory holidays, and India's Factories Act sets double the ordinary rate for hours beyond the limit. Exact amounts depend on the day type and whether the worker is covered, so check the notes before comparing. #### Do salaried employees get overtime? **Answer:** It depends on the country and the role. In the United States, salaried staff may still be non-exempt and owed overtime unless they meet salary and duties tests. In many countries managers are excluded by statute, but the definition is narrow, so verify before assuming. #### Is this table current? **Answer:** It reflects commonly cited statutory positions, but labor law is updated regularly, for example India's labour code reforms and local minimum wage updates. Treat it as a starting point and confirm each row with local counsel or your payroll provider before you rely on it. #### Can an employer require overtime beyond the cap? **Answer:** In most listed countries the cap is a legal limit, and consent does not override it. Some allow exceptions for emergencies or by government approval. Penalties for breaching caps can be significant, so schedule within the limits and keep records. ## Search terms overtime rules by country, overtime pay rate china india mexico, factories act overtime double rate, california daily overtime rules, china overtime 150 200 300 percent, overtime law comparison, statutory overtime premium table, maximum overtime hours per month by country --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json