Last month alone, overtime costs jumped 23% across restaurants nationwide. Most owners miss the 150% or 200% surcharges, causing them to underestimate actual personnel costs. Here's how to correctly process overtime in your labor calculations.
What is overtime in hospitality?
Overtime covers all hours your staff works beyond their contractual time. In the Netherlands, employees get a minimum 25% surcharge starting from the 41st hour weekly. Most hospitality collective agreements use higher percentages.
⚠️ Note:
Overtime surcharges vary by collective agreement. The hospitality CLA typically uses 150% for the first 8 overtime hours, then 200%. Always verify your specific CLA requirements.
Calculate your basic labor costs
Before calculating overtime, you need your normal labor costs. This goes beyond just gross salary.
- Gross salary: The contractual salary amount
- Employer contributions: Roughly 25% of gross salary
- Holiday pay: 8% of gross salary
- Pension and insurance: Varies per CLA
💡 Example basic labor costs:
Chef with 40-hour contract at €15/hour:
- Weekly gross salary: 40 × €15 = €600
- Employer contributions (25%): €150
- Holiday pay (8%): €48
- Other costs (5%): €30
Total weekly costs: €828
Real hourly cost: €828 ÷ 40 = €20.70
Calculate overtime with surcharges
Now you calculate overtime with proper surcharges. Most hospitality CLAs use a tiered approach - the kind of thing you only learn after closing your first month at a loss.
💡 Example overtime calculation:
Same chef works 48 hours instead of 40:
- Regular hours: 40 × €20.70 = €828
- Overtime hours 41-48 (8 hours): 8 × €15 × 1.5 = €180
- Employer contributions on overtime: €180 × 0.25 = €45
Weekly total: €828 + €180 + €45 = €1,053
Extra overtime costs: €225 (27% increase!)
Different overtime regulations
Not all overtime is equal. Know which percentages to apply.
- Initial overtime hours (41-48 hours): Typically 125% to 150%
- Extended overtime (49+ hours): Usually 200%
- Sunday and holidays: Generally 200%
- Night shifts (23:00-06:00): Often 125% to 150%
💡 Example complex overtime week:
Server works 52 hours, including 4 Sunday hours:
- Regular hours: 40 × €18.50 = €740
- Overtime hours 41-48: 8 × €14 × 1.5 = €168
- Overtime hours 49-52: 4 × €14 × 2.0 = €112
- Sunday premium: 4 × €14 × 1.0 = €56 (additional to 200%)
- Employer contributions: €336 × 0.25 = €84
Total: €1,160 (57% above 40 hours!)
Overtime in your weekly planning
To control overtime, plan staff strategically. Overtime often costs more than hiring extra workers.
⚠️ Note:
8 overtime hours at 150% equals the cost of 12 regular hours. Sometimes scheduling an additional employee is cheaper.
Administration and registration
Track all overtime for payroll and cost monitoring. This prevents month-end surprises.
- Record actual hours per employee daily
- Document overtime reasons (rush periods, sick cover, events)
- Calculate real labor costs including surcharges weekly
- Compare against budget for timely adjustments
A system like tools such as KitchenNmbrs can automatically calculate labor costs including overtime and show the impact on your weekly margins.
How do you calculate overtime in your labor cost calculation? (step by step)
Calculate your actual hourly rate including contributions
Add employer contributions (25%), holiday pay (8%), and other costs to the gross salary. This gives you the real cost per hour for normal hours.
Determine which overtime regulation applies
Check your CLA for the correct percentages. Usually 150% for the first overtime hours and 200% for extensive overtime. Don't forget Sunday and night surcharges.
Calculate overtime with surcharges and add employer contributions
Multiply overtime hours by gross salary and surcharge percentage. Add 25% employer contributions on top. This gives you the actual overtime costs for that week.
✨ Pro tip
Track your overtime percentage weekly: divide overtime hours by total hours, multiply by 100. Above 12% means you're spending €180 extra per week on a typical 4-person crew.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I pay employer contributions on overtime surcharges?
Yes, you pay roughly 25% employer contributions on the full amount including surcharges. This is frequently overlooked in calculations.
What if my employee doesn't have a 40-hour contract?
Overtime begins after contractual hours only. With a 32-hour contract, hours 33-40 are regular hours, overtime starts from hour 41.
Can I compensate overtime with time off?
Yes, but only with employee agreement. Compensation is at the same percentage as overtime surcharge (1.5 hours off for 1 overtime hour at 150%).
How do I prevent expensive overtime during busy periods?
Schedule flexible staff like on-call or temp workers, or redistribute hours across your team. 8 overtime hours often cost more than 12 regular hours.
What happens with sick leave and overtime?
With sick leave coverage, you pay double: continued payment for the sick employee plus overtime for the replacement. Always maintain staffing buffers.
How do split shifts affect overtime calculations?
Split shifts don't change overtime rules - you still count total daily hours. But they can help you avoid overtime by spreading coverage across peak periods without exceeding 40 weekly hours.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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