How to Calculate Holiday Overtime Pay: A Guide for Restaurant Owners

The Holiday Dilemma for Restaurants

When other industries take time off, restaurants are at their busiest. National holidays, weekends, long weekends — peak dining times mean your staff must work. But Taiwan's Labor Standards Act has strict rules on holiday overtime pay. Miscalculations can result in back-pay obligations and fines ranging from NT$20,000 to NT$1,000,000.

As a restaurant owner, you do not need to memorize legal statutes, but you must understand the basic calculation logic.

Three Types of "Holidays," Three Different Calculations

1. National Holidays (LSA §37)

Including New Year's Day, Lunar New Year, Tomb Sweeping Day, Dragon Boat Festival, Mid-Autumn Festival, National Day, and others — 12 days total. Rules for working on national holidays:

• Monthly-salaried employees: Pay an additional day's wage (since monthly salary already includes holiday pay, this is an "extra day")
• Hourly employees: First 8 hours at double the hourly rate
• Hours beyond 8 follow standard overtime rules: first 2 hours at 1/3 premium, next 2 hours at 2/3 premium

2. Rest Days (LSA §24)

The sixth working day of each week (typically Saturday). Rest day overtime rates are higher:

• First 2 hours: 1 and 1/3 times premium
• Hours 3-8: 1 and 2/3 times premium
• Hours 9-12: Even higher multiplier

3. Regular Days Off (LSA §36)

The seventh day of each week (typically Sunday). In principle, employers cannot require employees to work, except in cases of natural disaster or emergency.

Calculation Example

For a monthly-salaried employee earning NT$30,000:

• Daily wage = 30,000 ÷ 30 = NT$1,000
• Hourly wage = 1,000 ÷ 8 = NT$125
• Working 8 hours on a national holiday → Extra NT$1,000
• Working 10 hours on a national holiday → NT$1,000 + 125 × 2 × 4/3 = NT$1,000 + NT$333 = NT$1,333

Complicated, right? That is why we built the Holiday Pay Calculator — enter the salary and hours, and the system calculates every tier automatically.

Common Mistakes in the Restaurant Industry

• Confusing rest days with national holidays: They have different overtime multipliers
• Using 1.33 instead of 4/3: The law states "at least 1/3 more," and 1.33 is technically less than 4/3 (1.3333...)
• Forgetting extended overtime: Hours beyond 8 on national holidays require separate overtime calculation
• Scheduling without consent: Working on national holidays requires mutual agreement with employees

Use Tools to Avoid Disputes

Instead of manual calculations every time, use tools to verify:

• Holiday Pay Calculator: Quickly calculate single-day holiday work costs
• Overtime Pay Calculator: Calculate complete overtime for weekdays, rest days, and holidays
• Labor Cost Calculator: Evaluate your overall personnel expenses

Getting overtime pay right is not just about compliance — it is fundamental to retaining good employees. In an industry with high turnover, transparent and accurate pay keeps your team loyal.