๐ Overtime Pay Calculator
Enter a base hourly wage along with the hours worked as overtime, late-night overtime and holiday work, and this tool calculates overtime pay using the Japanese Labor Standards Act premium rates: 25% for overtime, 50% for overtime beyond 60 hours a month, 50% for late-night overtime and 35% for statutory holiday work. Handy for checking the overtime on a pay slip.
How to use
- Enter your base hourly wage.
- Enter the number of regular overtime hours worked.
- If applicable, enter late-night overtime hours (10pmโ5am) and holiday work hours โ each premium and the total are calculated automatically.
How the calculation works
This tool calculates overtime pay using the minimum premium rates set by Article 37 of Japan's Labor Standards Act. Overtime (beyond 8 hours a day or 40 hours a week): base hourly wage ร 1.25 ร hours Overtime beyond 60 hours a month: base hourly wage ร 1.5 ร hours Late-night overtime (10 pm to 5 am): base hourly wage ร 1.5 ร hours (25% overtime + 25% late-night) Statutory holiday work: base hourly wage ร 1.35 ร hours For the 60-hour threshold, overtime and late-night overtime hours are added together, and the hours above 60 are taken out of regular overtime and paid at the 50% rate (late-night overtime is assumed to fall within the first 60 hours). For monthly salaries, the base hourly wage is monthly pay รท average scheduled working hours per month. Family, commuting and housing allowances may be excluded from that calculation.
Worked example
Base hourly wage ยฅ1,500 20 hours of overtime 1,500 ร 1.25 ร 20 = ยฅ37,500 70 hours of overtime First 60 hours: 1,500 ร 1.25 ร 60 = ยฅ112,500 Remaining 10 hours: 1,500 ร 1.5 ร 10 = ยฅ22,500 Total: ยฅ135,000 8 hours on a statutory holiday 1,500 ร 1.35 ร 8 = ยฅ16,200
Things to be aware of
- Late-night holiday work (60% premium) and late-night overtime beyond 60 hours (75% premium) are not included.
- Company work rules may set higher rates than the legal minimum; if so, those rates apply.
- Different rules apply to managers and supervisors and to salaries that include fixed ("deemed") overtime pay.
- If you suspect unpaid overtime, you can consult your local Labor Standards Inspection Office.
FAQ
Where do the 25%, 50%, and 35% premium rates come from?
These are the minimum premium rates set by Japan's Labor Standards Act: regular overtime requires at least 25% extra pay, overtime that also falls in late-night hours (10pmโ5am) requires an additional 25% on top (50% total), and statutory holiday work requires at least 35% extra.
Does this account for the higher rate on overtime beyond 60 hours/month?
Yes. Overtime beyond 60 hours a month must be paid at a premium of at least 50%. The rule used to apply only to large companies, but since April 2023 it has applied to small and medium-sized businesses as well. This tool pays the hours by which overtime plus late-night overtime exceed 60 at the 50% rate.
Is this amount guaranteed to be accurate?
No, this is a simplified estimate tool. For the exact amount, check your employment contract, work regulations, and actual payroll calculation.