How to Calculate Overtime Pay in Türkiye

Formula

overtime pay = monthly gross wage / 225 × 150% × hours

• monthly gross wage: the employee’s monthly gross wage
• 225: 30 days × 7.5 hours. Settled payroll practice finds the hourly wage of a monthly-paid worker this way; the number is not in the law.
• 150%: the hourly rate for overtime. Extra hours use 125% (Labour Law no. 4857 art. 41).
• hours: the total overtime hours to be paid

Step-by-step example

A monthly gross wage of 45,000 TRY and 10 overtime hours:

1. Hourly wage: 45,000 / 225 = 200 TRY.
2. Overtime hourly rate: 200 × 150% = 300 TRY.
3. Overtime pay: 45,000 / 225 × 150% × 10 = 3,000 TRY gross.

If the same 10 hours were extra hours, the hourly rate would be 200 × 125% = 250 TRY and the total 2,500 TRY.

Overtime or extra hours?

If the contract sets 45 hours a week, there are no extra hours; every hour above 45 is overtime.

Points to watch

• Yearly limit: overtime cannot exceed 270 hours a year, and the employee must agree to it (art. 41).
• Time off: instead of the higher pay, the employee can choose 1 hour 30 minutes off for each overtime hour and 1 hour 15 minutes for each extra hour (art. 41).
• The result is gross: overtime pay is added to the month’s gross wage, and social security, income tax and stamp duty come off the total. Use the gross to net salary calculation for the net.
• Holidays are separate: work on national and public holidays (art. 47) and on the weekly rest day is not paid by this formula.