Overtime Pay Calculator

About the Ethiopian Overtime Calculator

Ethiopian labour law establishes clear rules for overtime compensation to protect workers from exploitation and ensure fair pay for additional hours worked. The overtime rates are defined in Ethiopian Labour Proclamation 1156/2019, specifically Article 67. All employees who work beyond their regular working hours are entitled to overtime pay at enhanced rates that vary depending on when the overtime occurs.

To calculate overtime pay, you first need to determine the regular hourly rate. This is derived by dividing the monthly salary by 208, which is the product of 8 working hours per day and 26 working days per month. This gives you the base hourly rate from which all overtime rates are calculated. Once you have this figure, you can apply the appropriate multipliers for different types of overtime work.

Weekday overtime, which applies to hours worked beyond normal hours from Monday through Friday, is paid at 1.25 times the regular hourly rate. Saturday overtime carries a higher multiplier of 1.50 times the regular rate, reflecting the additional burden and sacrifice of weekend work. The highest rate applies to overtime worked on Sundays or government-declared public holidays, which is compensated at 2.00 times the regular hourly rate.

This calculator allows you to input the number of hours worked for each overtime category separately and instantly calculates the pay for each type, the total overtime amount, and the combined total pay including the base salary. This is valuable for both employees who want to verify their payslips are correct and employers who need to ensure they are complying fully with the Labour Proclamation requirements.