Overtime vs. On-duty: Allowance Calculation & Differences

Overtime work refers to extending the regular working hours to continue performing the original tasks. On-duty work includes tasks such as day-duty and night-duty, where the work performed is different from the original duties. For example, if an employee in a factory continues performing their original tasks beyond the regular working hours, it is considered overtime work. However, if they perform tasks such as regular facility monitoring, safety management, or handling unexpected situations, which are different from their original duties, it can be classified as on-duty work.

 

Same location? vs. Different location?

Whether overtime work or on-duty work is performed at the original location or a different location is not the determining factor for classifying them. The nature of the work is the basis for categorizing it as overtime work or on-duty work. For instance, if the employee goes to a different location after the working hours have passed to continue their original tasks, it can be considered as overtime work. On the other hand, if they perform different tasks at the original workplace, which are unrelated to their original duties, it can be classified as on-duty work.

 

Difference in work allowances

Overtime work usually entitles employees to receive an additional allowance of 50% of their regular wages. If an employee works more than 8 hours per day or 40 hours per week, they will receive an additional 50% of their regular allowance. You can find detailed information about this here.

 

However, there are no specific regulations regarding on-duty allowances in the Labor Standards Act. The payment of on-duty allowances is determined through agreement between the employer and employees based on employment regulations or other rules established by the company. Additionally, when determining whether it is overtime work or on-duty work, another criterion to consider is the intensity of the tasks. If the on-duty work is almost identical to the original duties and involves similar or higher labor intensity, it is generally considered regular work, and overtime work allowances should be paid(일·숙직근로자에 대한 노무관리 지도지침, 근로개선정책과-3090, 2014.5.28.).

 

Taxable or tax-exempt for on-duty allowances?

On-duty allowances are eligible for tax exemption up to KRW 200,000 per month. Exempted items also include the four major insurances (health insurance, employment insurance, national pension, and industrial accident compensation insurance). It is important to check whether the payment is classified as overtime work allowance or on-duty allowance in the salary details, whether the on-duty allowance is tax-exempt, and whether it qualifies for exemption from the four major insurances.

 

Day-duty work and night-duty work

If on-duty work needs to be performed on holidays during regular working hours, it is generally referred to as day-duty work. On the other hand, night-duty work starts after regular working hours or day-duty work hours have ended and continues until the next regular working hours or the start of day-duty work.

 

 

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