Overtime Pay to Night Work Allowance: Complete Guide to Labor Standards Act Benefits

Work Hours Standards Set by the Labor Standards Act

The Labor Standards Act strictly regulates work hours to protect workers' health and livelihood. A maximum of 40 hours per week is the standard work time, and allowances must be paid for all work exceeding this. As of 2026, many workers suffer losses because they don't properly understand their rights. Through this article, we will clarify the standards and calculation methods for each type of allowance.

An important point is that employers cannot refuse to pay allowances just because the base salary is low. Payment of allowances under the Labor Standards Act is mandatory, and violations can result in imprisonment of up to 3 years or fines up to 30 million won.

How is Overtime Pay Calculated Exactly?

Overtime work refers to work exceeding 40 hours per week. For example, if someone works 9 hours daily from Monday to Friday, 1 hour daily, totaling 5 hours per week, becomes overtime. For overtime work, employers must pay at least 150% of standard wages.

Standard wages refer to all regularly paid wages including base salary, fixed bonuses, and position allowances. If the 2026 minimum wage is 11,470 won per hour, calculations are based on this figure. For example, a worker earning 2 million won per month (based on 209 hours of work per month) has a standard wage of approximately 9,569 won per hour. The overtime allowance for 1 hour must be 9,569 × 1.5 = 14,354 won or more.

One important consideration is complex situations involving holidays and nighttime. If overtime work is done at night, both night work allowance and overtime allowance apply, resulting in higher compensation.

Difference Between Night Work Allowance and Holiday Work Allowance

Night work refers to work performed between 10 p.m. and 6 a.m. the next day. All workers during these hours must receive an additional allowance of at least 50% of standard wages. Unlike overtime work, night work has no time limit, and even if work is done at night within standard working hours, allowance must be paid.

Holiday work allowance is higher. When working on regular holidays (usually Sunday) or statutory public holidays, employers must pay at least 100% of standard wages (meaning 2 times the wage or more). If someone works 8 hours on Sunday, they should receive their base salary plus an additional amount equal to the base salary.

• Overtime pay allowance: At least 150% of standard wages (for hours exceeding 40 per week)
• Night work allowance: At least 50% of standard wages (for work between 10 p.m. and 6 a.m.)
• Holiday work allowance: At least 100% of standard wages (for holiday work)

Combined Allowance Situations and Calculation Examples

In practice, multiple allowances often overlap. For example, what happens if someone works 8 hours on Saturday night (11 p.m. to 6 a.m.)? First, you need to confirm whether Saturday is a holiday. At most workplaces, Saturday is a working day, so only night work allowance (50%) applies. If standard wage is 10,000 won per hour, the calculation is 8 hours × 10,000 × 1.5 = 120,000 won.

However, if work was done from 11 p.m. Sunday to 6 a.m. Monday, the situation differs. This is night work on a holiday, so both holiday work allowance (100%) and night work allowance (50%) apply. The calculation is standard wage × (100% + 50%) × hours, resulting in 10,000 × 1.5 × 8 = 120,000 won. According to court precedent, these two allowances are not calculated cumulatively; rather, the higher standard applies.

How to Handle Refusal to Pay Allowances

If a worker doesn't receive their allowance, they should first make a written request to the company. A written record becomes evidence in future disputes. If the company refuses, workers can file a complaint with the Ministry of Employment and Labor's Employment and Labor Office. On-site investigations and guidance can help recover unpaid wages.

More aggressive options include filing for unfair dismissal relief at the Labor Relations Commission or filing a wage claim lawsuit in court. With a 3-year statute of limitations, workers can claim all unpaid allowances from the past 3 years. It is particularly important to secure records of work over the past 3 years, pay stubs, and clock-in/out records in advance.

This article provides information compiled and organized by AI after analyzing various sources. For more accurate information, please consult relevant organizations or professionals.