Working more hours than agreed in your contract entitles you to specific compensation, subject to legal limits that many companies and workers are unaware of or don't apply correctly.
What counts as an overtime hour
It's every hour worked beyond the maximum ordinary working day agreed in your contract (unlike the additional hours in part-time contracts, which are a specific and separate concept).
How it must be compensated: pay or time off
The law gives the company the option to compensate overtime in two ways, unless the collective agreement makes one of them mandatory:
- Financial compensation, at a rate that, at minimum, cannot be lower than that of a regular hour.
- Equivalent time off, to be taken within the four months following the overtime worked, unless the collective agreement sets a different deadline.
If the contract or collective agreement doesn't specify the form of compensation, it's understood that it must be compensated with time off, unless expressly agreed otherwise.
The legal limit on overtime hours
Generally, the maximum number of overtime hours that can be worked is 80 hours a year, a limit that doesn't count overtime compensated with time off within the following four months, nor so-called "force majeure overtime" (needed to prevent or repair accidents and other extraordinary and urgent damage).
How overtime is taxed under income tax
Contrary to a widespread belief, overtime is not generally exempt from income tax in Spain: it's taxed as ordinary employment income, subject to withholding just like the rest of your salary, and included in your general taxable base along with the rest of your employment income.
Why it's important for your employer to record it correctly
Beyond the general obligation to keep a daily record of working hours, overtime must be specifically reflected in employment records and on the payslip, both to guarantee proper compensation and so the Labor Inspectorate can verify compliance with legal limits if needed.
What to do if your employer doesn't compensate your overtime
If you work overtime that your employer doesn't compensate either in pay or time off, you have the right to claim it, both through a wage claim and, if the situation continues, by filing a complaint with the Labor Inspectorate.
Calculate the effect on your net salary
Our net salary calculator lets you estimate how a gross annual salary that includes the financial compensation for your overtime would affect your net pay.