Pay supplements

What it means

Wage supplements are components of pay due to an employee in addition to the basic wage for work at certain times or in certain conditions. The Labour Code sets minimum supplements for overtime, night work, weekend work, public holiday work and work in difficult conditions.

Supplements are set either as a percentage of the employee’s average earnings, for example for overtime or public holidays, or as a share of the hourly minimum wage, for example for night and weekend work. The employer may pay more, but not less than the statutory minimum.

Supplements add up. Someone working overtime on the night from Saturday to Sunday is entitled to the night, weekend and overtime supplements. All of them are part of gross pay and are subject to contributions and tax.

How it works in practice

To calculate them correctly we need the employer’s working time records broken down by type of hour. The payroll system then assigns supplements automatically using the holiday calendar and night hours. With irregular shifts we check that hours are split correctly across midnight.

For a hazardous work environment, the supplement is based on the job categorisation and the occupational health service’s assessment. Without an up-to-date assessment we cannot tell who is entitled, so we keep it updated with the client.

Every year by 1 January we review contracts in which supplements are set as a fixed amount. As the minimum wage rises, a fixed amount may fall below the statutory minimum, and the employer would then have to pay the difference retroactively.

What to watch out for

For managers and under certain agreements, pay may be agreed with overtime already taken into account. Such an agreement must be made expressly and within the statutory limits. Without it, managers are entitled to supplements too.

Incorrectly calculated supplements are among the most frequent labour inspection findings. Back pay for several months can be significant for a company, and employees may also claim late-payment interest.