In sectors such as healthcare, IT, or certain technical services, it's common for workers to have to remain available outside their normal working hours in case an urgent need arises. This availability, known as being on call, has its own pay treatment, different from hours of actual work.
What an on-call or standby allowance is
It's the financial compensation for remaining reachable and available to return to work if needed, outside your normal working hours, regardless of whether you actually end up working during that period of availability.
The difference between being on call and actually working
- On-call time without actual work: you remain available but never have to step in. This is usually paid with a specific allowance, normally lower than the value of an hour of actual work.
- On-call time with actual work: if you're called in and work during your on-call period, those hours worked are paid separately, at the corresponding rate for ordinary or overtime hours, in addition to the on-call allowance.
What your collective agreement says
The on-call system (its maximum frequency, how it's paid, whether it's compensated with extra time off) is mainly regulated by each sector or company collective agreement, since the law doesn't set a single, detailed regime applicable equally to all sectors, beyond the general limits on working hours and rest periods.
How this allowance is taxed under income tax
Like other salary supplements, the on-call or standby allowance is taxed as ordinary employment income, with no specific exemption, and is included in your general taxable base along with the rest of your salary, subject to the usual income tax withholding.
How it affects your contribution base
This allowance generally forms part of your social security contribution base, since it's considered pay for work, which increases your future benefits calculated on that base.
Why it's worth checking working-hour and rest limits
A poorly managed on-call system can breach the legal minimum rest periods between shifts and maximum weekly working hours, creating both a health risk for the worker and a possible labor law violation by the company. If your on-call shifts are very frequent, it's worth checking that these limits are being respected.
Calculate your net salary including these allowances
Our net salary calculator lets you estimate your net pay from your total gross annual salary, including these allowances.