Faced with increasingly difficult hiring conditions, construction companies are encouraging their employees to work more and more overtime. In the fourth quarter of 2024, according to data from the Dares, a full-time worker across all sectors worked 17.3 hours of overtime. This rate has been steadily rising since 2018. In the construction sector in particular, overtime ranges from 25.6 to 28.6 hours per full-time employee.
Nevertheless, overtime in the construction industry represents a cost for the company and additional entitlements for employees. What are these entitlements? How can you calculate them without jeopardizing your company’s cash flow and the health of your workers?
One overtime hour is counted as time worked beyond the legal workweek specified in the employment contract. For a full-time employee, this is set at 35 hours per week. However, unlike other industries, construction companies follow their own rules in accordance with the Labor Code and their collective bargaining agreement.
For example, overtime pay cannot be provided in the form of bonuses or one-time payments (Éditions Tissot). Only the overtime premium or compensatory time off are accepted as compensation for this extension of working hours on construction sites. However, no employee may exceed the terms of their contract without the company’s consent.
The annual quota corresponds to the maximum number of overtime hours an employee may work in a calendar year. It applies to all employees except those on fixed-day arrangements and is supplementary; in other words, a company-wide agreement may set its own limit (FFB). The national collective bargaining agreement for construction workers or the company-level agreement sets the maximum working hours that must not be exceeded.
In the first case,Article 3-13 of the 1990 collective bargaining agreement will still apply in 2025 to all construction companies. It sets the limit at 145 hours per employee if working hours are calculated on an annual basis; otherwise, the limit is 180 hours. Any excess hours are subject to the approval of the works council or employee representatives.
Certain extensions are not considered overtime that must be paid. The reasons cited are related to emergencies or unforeseen circumstances:
Good to know: The amendment to the agreement of November 6, 1998, which provided for an increase in quotas to 265 and 300 hours, has been overturned by the Paris Court of Appeals due to a failure to extend (Please).
Overtime hours are calculated based on actual working time. Commuting time is not included, unless :
H3: Financial Surcharges
Surcharges may be financial or may be replaced by compensatory time off. In the former case,Article L3121-36 of the Labor Code sets the wage premium rate for the following pay ranges:
For example, an electrician spends 7 additional hours working on his building under construction due to the relocation of outlets or the integration of a home automation system. If his gross monthly salary is €2,000, his hourly rate is €13.18 (since there are 151.67 hours in a work month). A 25% premium rate is equivalent to a coefficient of 1.25. Therefore, the calculation is as follows:
Gross overtime pay = number of overtime hours × hourly rate × overtime multiplier = 7 × €13.18 × 1.25 = €115.33.
For 10 additional hours, you must apply the premium rate, which is 50% for time beyond the eighth hour. Therefore:
Gross amount for overtime = 13.18 × [8 × 1.25 + 2 × 1.5] = 171.34 €
Good to know: A collective bargaining agreement or company-wide agreement may provide for premium rates that differ from those prescribed by law. However, regardless of the specific percentages, they may never be less than 10%.
Substitute Compensatory Time Off (RCR)
Depending on the terms of the collective bargaining agreement or company-wide agreement, compensatory time off may replace monetary compensation. Article L3121-37 of the Labor Code requires the approval of the Social and Economic Committee for the implementation of this system. These compensatory rest periods are also paid at a premium, just like overtime pay, at the same rates:
A drywall installer who works 7 hours of overtime is entitled to 8 hours and 45 minutes of compensatory time off. If he works 10 hours of overtime, the 50% premium applies to the remaining two hours, for a total of:
Compensatory rest time = 8 × 1.25 + 2 × 1.5 = 13 hours
The wage or rest period premium applies if the employee works at night (from 9 p.m. to 6 a.m.) or on a holiday. If night work is scheduled on a regular basis and involves 10 or more employees, the hourly rate is increased by 25% of the gross wage. If the work is occasional or takes place on a Sunday or a public holiday, it is paid at double the rate (a 100% premium). These rates are set forth in Article 3-17 of the national collective bargaining agreement for blue-collar workers and cannot be combined. They apply to both blue-collar workers and ETAM.
However, these premium rates do not accumulate. Suppose an employee works overtime, does night work, and works on a Sunday all in the same month. Only the highest premium rate is applied (Captain Contrat)
Good to know: If overtime exceeds the allotted quota, compensatory time off must be 100% for blue-collar workers and ETAM (employees, technicians, and supervisors). This rule applies to all construction companies, regardless of their number of employees. For managers at a company with more than 20 employees covered by a collective bargaining agreement, their compensation is only 50% if there is no specific agreement (Editions Tissot).
Since 2019, overtime in the public or private construction sector has been subject to a reduction in social security contributions at a rate of 11.31%. This percentage is calculated based on the pay for overtime. Consequently, such pay is not subject to withholding tax if the exemption does not exceed €7,500 per year (Habitat Presto).
On the employer side, those with fewer than 20 employees are eligible for a flat-rate deduction of €1.50 on their URSSAF employer contributions for each hour of overtime reported (excluding compensatory time off). For companies with 20 through 249 employees, inclusive, this deduction is reduced to €0.50 per hour. Companies with 250 or more employees are no longer eligible for this deduction (Legisocial).
Overtime and the associated premium rates are factored into the calculation of paid time off in the construction industry. Both components are included in the gross reference wage (general system) or the hours worked during the accrual period (construction industry system).
Calculating Overtime in the Construction Industry is an essential accounting task for ensuring the profitability of your construction projects. Protecting the health of your teams is also critical to the well-being of your company. The specific rules—including overtime caps and premium rates—require constant attention.
If you manage your teams’ overtime properly, you can anticipate additional costs and optimize the construction schedule , and build employee loyalty. That’s why a construction management software is an essential tool for recording and tracking your workers’ timesheets in real time. Discover this feature on Techtime, and much more…
