How Overtime Calculation Works on Your Payslip

Overtime is work performed beyond the normal contractual hours and requires a mandatory pay premium by law. Knowing how to calculate overtime is essential for verifying that your payslip is correct. In this comprehensive guide, we explain everything about overtime premiums, hour limits, and the tax treatment of overtime in 2026, with our free Overtime Calculator.

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What Is Overtime Work

Under Italian law (Legislative Decree 66/2003), overtime work is that which exceeds 40 hours per week (or the shorter hours established by the CCNL). Pay attention to the distinction:

  • Supplementary work: hours beyond the contractual schedule but within the 40-hour weekly limit (typical for part-time workers)
  • Actual overtime: hours beyond the 40-hour weekly limit

In many CCNLs, the normal schedule is 38 or 39 hours: the hours between the contractual schedule and 40 hours are “supplementary” and carry a different (generally lower) premium.

Maximum Overtime Limits

The law imposes precise limits on overtime work:

  • Annual maximum: 250 overtime hours per calendar year (unless otherwise specified by CCNL)
  • Weekly average: total working hours (regular + overtime) cannot exceed an average of 48 hours calculated over a 4-month period
  • Daily rest: a rest period of at least 11 consecutive hours every 24 hours must be guaranteed

Some CCNLs provide different limits: for example, the Commerce CCNL sets the cap at 250 annual hours, while the Metalworkers CCNL may set specific monthly limits.

Overtime Pay Premiums

The premium percentages vary depending on when the overtime work is performed. Here are the most common rates provided by the main CCNLs:

CCNL Commerce and Services

  • Daytime weekday overtime: +15% (first 8 weekly hours) and +20% (subsequent hours)
  • Nighttime overtime: +30%
  • Holiday overtime: +30%
  • Nighttime holiday overtime: +50%

CCNL Metalworkers

  • Daytime weekday overtime: +25%
  • Nighttime overtime: +50%
  • Daytime holiday overtime: +50%
  • Nighttime holiday overtime: +75%

General Reference Values

If your CCNL does not specify, the minimum reference premiums are:

  • Daytime weekday: +25%
  • Nighttime (10:00 PM - 6:00 AM): +50%
  • Holiday: +50%
  • Nighttime holiday: +75%

How to Calculate Your Base Hourly Pay

The first step in calculating overtime is to determine your gross hourly pay. The formula is:

Hourly pay = Gross monthly salary / CCNL hourly divisor

The hourly divisor is established by each CCNL and represents the conventional number of monthly hours. For example:

  • CCNL Commerce: divisor 168 (40 hours × 4.2 weeks)
  • CCNL Metalworkers: divisor 173
  • CCNL Public Employment: divisor 156

Practical example: gross monthly salary of 2,000 euros, Commerce CCNL:

Hourly pay = 2,000 / 168 = 11.90 euros/hour

Complete Overtime Calculation Example

Let's take a worker with the Metalworkers CCNL, gross salary of 2,200 euros/month, who worked the following overtime in one month:

  • 12 hours of daytime weekday overtime (+25%)
  • 4 hours of nighttime overtime (+50%)
  • 8 hours of holiday overtime (+50%)

Step 1 - Base hourly pay: 2,200 / 173 = 12.72 euros/hour

Step 2 - Daytime overtime: 12.72 × 1.25 × 12 = 190.80 euros

Step 3 - Nighttime overtime: 12.72 × 1.50 × 4 = 76.32 euros

Step 4 - Holiday overtime: 12.72 × 1.50 × 8 = 152.64 euros

Total gross overtime: 190.80 + 76.32 + 152.64 = 419.76 euros

This gross amount will then be subject to INPS contributions and IRPEF income tax like the rest of the salary.

Taxation of Overtime

Overtime is subject to normal IRPEF taxation by brackets, but some tax benefits exist:

10% Substitute Tax (Productivity Bonuses)

For 2026, overtime pay linked to increases in productivity, profitability, and efficiency can be taxed at a 10% substitute tax instead of regular IRPEF, up to a maximum of 3,000 euros per year, for workers with income up to 80,000 euros in the previous year.

This benefit must be provided for by a company or territorial agreement, and the worker can opt out if regular IRPEF taxation would be more advantageous.

INPS Contributions

Normal INPS social security contributions apply to overtime (generally 9.19% borne by the worker), with an additional 1% contribution on the amount exceeding the first pensionable income bracket.

Overtime and Part-Time Work

For part-time workers, hours beyond the contractual schedule but within full-time hours are considered supplementary work, with a premium generally of 15%. Hours beyond full-time are overtime in every respect, with regular premium rates.

Part-time workers can refuse supplementary work if they have “proven work, health, family, or professional training needs” (Legislative Decree 81/2015).

Time Banking: An Alternative to Premiums

Many CCNLs provide for the time banking system: overtime hours are “deposited” in an individual account and can be taken as paid time off at a later date (generally within 12-24 months). In this case, the percentage premium is still paid on the payslip, but the base hours are set aside.

Calculate Your Overtime Online

To avoid errors and quickly verify your overtime amounts, use our free online Overtime Calculator. Enter your gross salary, CCNL, and number of hours by overtime type, and instantly get:

  • Base hourly pay
  • Gross amount for each overtime type
  • Total gross amount
  • Estimated net pay after contributions and IRPEF

How to Read Overtime on Your Payslip

On your payslip, overtime generally appears in the central section (earnings), with separate entries by type:

  • Weekday overtime hours: number of hours × premium rate
  • Nighttime overtime hours: number of hours × premium rate
  • Holiday overtime hours: number of hours × premium rate

Verify that the listed hours match the hours you actually worked and that the premium matches what your CCNL provides. If there is a discrepancy, report the error to the payroll office.

When Can the Employer Request Overtime

The employer can request overtime work:

  • In cases provided for by the applicable CCNL
  • In case of exceptional technical-production needs
  • In case of force majeure or safety hazards
  • For special events (trade fairs, exhibitions, events)

The worker can refuse overtime if it does not fall within the cases provided by the contract, but the refusal must be justified. An unjustified refusal may result in disciplinary action.

Frequently Asked Questions About Overtime

Can my employer force me to work overtime?

Yes, within the limits set by law and the CCNL, and for the reasons listed above. Refusal without just cause can be subject to disciplinary action.

Does overtime affect my pension?

Yes, overtime is subject to INPS contributions and therefore increases your contribution pool for future pension calculations.

Can I work more than 250 overtime hours per year?

The legal limit is 250 annual hours, but some CCNLs may provide different limits (higher or lower). In any case, the weekly average must not exceed 48 hours over a 4-month period.