Compensation and Working Time
Overtime Compensation
Normal working hours are 8 hours a day and 48 hours a week. Workers may be required to work overtime, provided that total working hours, inclusive of overtime, must not exceed ten (10) hours per day, except for cases of preventing a disaster or repairing damage caused by a disaster.
Employers may set the normal working hours in such a way that employees get Saturday afternoon, as well as Sunday, off. However, the normal working hours must not exceed 9 hours per day. Overtime is the work done in excess of normal working hours. Overtime is allowed only for exceptional and urgent work. Workers must be allowed to choose whether they want to work overtime or not. Employers cannot impose any penalty on workers who choose not to work overtime. Employers are required to get permission from the Ministry of Labour before giving overtime work to employees. The overtime authorisation letters issued by the Ministry of Labour limit overtime to 2 hours per day. To make up for the hours lost due to interruption in certain cases, overtime of one hour per day is also allowed for 30 days per year.
An employer is required to pay at least150% of the wage if overtime work is performed during the day on normal working days and 200% of the wage if overtime work is performed during the night hours (22:00 to 05:00).
The same higher rates are applicable to the piece-rate employees who work overtime. The piece-rate employees are entitled to an additional 50% payment for overtime work performed during normal overtime hours and an additional 100% for overtime performed during night hours, Sunday or a public holiday. Employees who work overtime must receive a meal allowance or receive one free meal every day on which they work overtime.
Several articles of the 1997 Labour Law have been amended by the Royal Order No. NS/RKM/1021/011 dated 5 October 2021. Under the amended Article 138 of the Labour Law, enterprises can now divide the work schedule into three shifts (morning, afternoon, and night) while limiting each shift to eight hours, i.e., the maximum daily work hours. Prior to the amendment, the Labour Law allowed the division of work into two shifts only (morning and afternoon).
Overtime work must be voluntary. Employers cannot coerce or discipline workers to force overtime. Prakas 112/25 specifies circumstances for overtime (inventory, urgent tasks) and requires prior approval via the online system (LACMS) with worker representative consent for overtime work and work on weely rest days and public holidays.
Sources: §137-140 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021); Prakas on Overtime Work of Normal Work Hours (80/1999); Arbitration Council Awards 78/2004; Prakas on Overtime in Addition to Normal Working Hours, Work on Paid Public Holidays and Suspension of Weekly Day off (112/25
Night Work Compensation
In accordance with the Labour Code, night work is a period of at least 11 consecutive hours, including the period from 22:00 to 05:00 of the following day.
Night work is paid at the premium rate of 130% of the normal hourly salary paid during the day. If the night work is performed as overtime, it is paid at 200% of the normal wage rate during the day. Employers are required to provide the night workers with a sleeping place/lodging or otherwise provide them with transportation when they finish work at night.
Sources: §137, 139 & 144 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021); Prakas on Overtime Work of Normal Work Hours (80/1999); Prakas on Overtime in Addition to Normal Working Hours, Work on Paid Public Holidays and Suspension of Weekly Day off (112/25)
Compensatory Holidays / Rest Days
In extraordinary circumstances, workers may perform work on weekly rest days and public holidays. Instead of getting higher wages for working on a weekly rest day, workers get a compensatory day off in lieu of the rest day during the following week. There is no provision for compensatory holiday for workers working on a public holiday.
Also, if weekly rest is suspended for urgent work, the employer must grant a compensatory rest day within 30 days.
Sources: §151 & 152 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021); Prakas on Overtime in Addition to Normal Working Hours, Work on Paid Public Holidays and Suspension of Weekly Day off (112/25)
Weekend / Public Holiday Work Compensation
Workers may be required to work on weekly rest days and public holidays. In such circumstances when employees have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the rate of 200% of the normal wage rate.
Sources: §139 & 164 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2021)
Regulations on Compensation
- Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2018)
- Prakas on Overtime Work of Normal Work Hours (80/1999)
- Arbitration Council Awards 78/2004
