Calculation of Fixed Overtime Pay

Please treat the fixed overtime pay calculated in this spreadsheet as a guideline only; the final salary amount is to be determined at your own discretion.
　

■■ Important Notes on Fixed Overtime Pay (Flat-Rate Overtime Pay) ■■
　
[1] When Implementing
Determine the number of hours covered by the overtime allowance (e.g., “Fixed Overtime Allowance: ○○ yen (equivalent to ○ hours)”),
and clearly disclose this to employees, distinguishing it from base pay and other allowances.
Examples of disclosure: Issuing a Notice of Employment Conditions, including the provision in the Work Rules, etc.

[2] When overtime work exceeds the “○ hours” specified in [1]
In addition to the fixed overtime allowance, you must pay overtime pay for the excess hours.

[3] When the set number of hours for the fixed overtime allowance is too long (i.e., the fixed overtime allowance is too high)
Wages for the scheduled working hours may become insufficient, potentially falling below the minimum wage.
Please check Column D (hourly rate) of the calculation results.
Set the number of hours and wage amount while taking into account the minimum wage rates for each prefecture and industry.

[4] When employees work beyond the statutory working hours (8 hours per day, 40 hours per week)
You must conclude an overtime agreement (Article 36 Agreement) and file it with the Labor Standards Inspection Office.
　
　
■■ Related Information ■■

● For inquiries regarding the Labor Standards Act, working hours, or wages, please consult your nearest Labor Standards Inspection Office or a certified social insurance and labor consultant.
You can find certified social insurance and labor consultants nationwide using the “Find a Consultant” feature on the National Federation of Social Insurance and Labor Consultants’ website (link below).
　
● An upper limit on overtime has been in effect since April 2019 (April 2020 for small and medium-sized enterprises).
Reference materials are available in the “Related Links” section.
　
● Starting in April 2023, the premium pay rate for overtime exceeding 60 hours per month will be at least “50%” for companies of all sizes.
Reference materials are available under “Related Links.”
　
　
■■ Update Information ■■
December 2014: Published
April 2022: Added the option to select the calculation unit (1,000 yen, 100 yen, 10 yen, or 1 yen), which was previously limited to 100-yen increments.