Working time fund

What it means

The working time fund is the number of hours an employee is due to work in a given period, usually a month, under the employment contract and schedule. It is calculated from the set weekly working time and the number of working days in the month, and public holidays falling on working days reduce it.

The Labour Code sets maximum weekly working time at 40 hours. In two-shift operations the maximum is 38 and three-quarter hours, and in three-shift and continuous operations 37 and a half hours a week. Young workers under 16 may work at most 30 hours a week, older young workers 37 and a half.

With part-time work the fund is reduced proportionately. With uneven distribution individual weeks may be longer or shorter, but the average over the agreed period must match the set weekly time.

How it works in practice

With a monthly salary, the fund matters for calculating compensation and supplements: average hourly earnings, overtime, night work or holiday work are all derived from hours. With hourly pay, the fund directly determines what the employee earns if they work the whole month.

In payroll the fund is set according to the type of contract and shift pattern and compared with hours worked from attendance records. The differences reveal overtime, unpaid leave or obstacles to work, which must be correctly booked and taxed.

With flexible arrangements such as a working time account, the fund is tracked over a longer period and the employee receives a steady wage regardless of current hours. The balance is settled at the end of the period, which requires precise records.

What to watch out for

The most common mistake is a wrongly set fund in shift operations. If the company runs two shifts but employees have 40 hours a week in their contracts, part of their work is effectively overtime that carries a supplement. In a labour inspection this is paid back retroactively.

Watch public holidays too. In a month with two holidays the fund is lower, and an hourly-paid employee earns less, although they may be entitled to wage compensation for the holiday. Payroll inputs must be prepared on the actual fund for that month, not an average.