What Is the Maximum Weekly Overtime Cap Permitted in Bhutan?

Managing overtime is an important part of labour-law and payroll compliance in Bhutan. Employers need to monitor not only the employee's total working hours but also the number of additional hours worked beyond the standard schedule.

Under Section 163 of Bhutan's Regulation on Working Conditions 2022, overtime hours must not exceed 12 hours per week. The same regulation establishes standard working hours of up to 8 hours per day and 48 hours per week.

What Is the Weekly Overtime Limit?

The maximum overtime permitted under the Regulation is:

12 overtime hours per week.

This is in addition to the standard working schedule of up to:

• 8 hours per day
• 48 hours per week

Therefore, an employee working the full standard weekly schedule could have up to 12 additional overtime hours under the stated overtime limit.

For example:

Working category	Maximum
Standard hours per day	8 hours
Standard hours per week	48 hours
Overtime per week	12 hours
Standard + overtime	Up to 60 hours in a week

The 60-hour figure is a mathematical combination of the standard 48 hours and the 12-hour overtime ceiling; it should not be interpreted as a general permission to schedule employees for 60 hours without considering the other requirements of the Regulation, including rest periods and applicable conditions.

Is Overtime Mandatory?

No. Section 164 of the Regulation states that overtime work must be performed through mutual agreement between the employer and employee.

This means employers should have an appropriate process for agreeing to and recording overtime rather than simply adding extra hours to an employee's schedule.

A payroll or attendance system can record:

• Employee's normal schedule
• Actual working hours
• Approved overtime
• Overtime hours by day
• Weekly overtime total
• Overtime payment

Example of the 12-Hour Weekly Cap

Suppose an employee works overtime as follows:

Day	Overtime
Monday	2 hours
Tuesday	2 hours
Wednesday	1 hour
Thursday	3 hours
Friday	2 hours
Saturday	2 hours
Total	12 hours

The employee has reached the 12-hour weekly overtime limit.

The employer should not schedule additional overtime without first checking whether the additional work is legally permissible under the applicable rules.

What If an Employee Works More Than 12 Hours of Overtime?

The current 2022 Regulation expressly states that overtime hours must not exceed 12 hours per week.

Older Department of Labour guidance also described a limit of 2 overtime hours per day or 12 hours per week and stated that an employer requiring work beyond those limits should seek prior approval from the Chief Labour Administrator.

Because the current Regulation is the primary reference for present-day payroll compliance, employers should check with the Department of Labour regarding any exceptional situation rather than treating the older approval guidance as an automatic entitlement to exceed the current limit.

How Is Overtime Paid?

Section 162 provides that an employee is entitled to overtime payment, which should be no less than the normal rate of pay.

For example, if an employee's normal hourly rate is Nu. 150 per hour and the employee works 5 overtime hours, the minimum calculation under the general overtime provision would be:

Nu. 150 × 5 = Nu. 750

However, certain overtime situations receive an additional payment. For example, qualifying work between 10:00 PM and 8:00 AM in addition to the normal day shift attracts an additional 50% of the normal rate. Work performed during public holidays also attracts an additional 50%.

Example: Employee Reaches the Weekly Cap

Consider an employee with a normal hourly rate of Nu. 200.

During the week, the employee performs 12 hours of ordinary overtime.

If those hours are paid at the normal hourly rate:

12 × Nu. 200 = Nu. 2,400

If some of those hours qualify for the additional 50% payment—for example, qualifying night overtime—the applicable calculation would be different.

Payroll should therefore record the type of overtime, not just the number of additional hours.

Don't Confuse the Daily and Weekly Limits

Employers should distinguish between:

Standard working hours:
Up to 8 hours per day and 48 hours per week.

Weekly overtime ceiling:
Up to 12 overtime hours per week.

The Department of Labour's worker handbook additionally describes overtime as work exceeding 8 hours per day or 48 hours per week and refers to a 2-hour daily and 12-hour weekly overtime limit.

Therefore, monitoring only the weekly total may not be sufficient for employers using the older daily-limit guidance. Businesses should check the applicable current requirements when creating shift schedules.

Rest Periods Also Matter

Working-hour compliance is not limited to the overtime cap.

The 2022 Regulation provides for:

• A minimum 12 consecutive hours of daily rest
• A minimum 24 consecutive hours of weekly rest

It also contains requirements concerning rest breaks during working periods.

Consequently, an employer should consider overtime + daily rest + weekly rest + breaks when preparing employee schedules.

Why Overtime Tracking Is Important

Businesses with shift-based or time-sensitive operations can quickly accumulate overtime if working hours are not monitored. This can occur in:

• Construction
• Hotels and hospitality
• Restaurants
• Retail
• Manufacturing
• Security services
• Healthcare
• Transportation
• Field operations

A weekly overtime report can help HR identify employees approaching the 12-hour limit.

Example Dashboard

Employee	Standard Hours	Overtime	Status
Employee A	48	4	Within limit
Employee B	48	8	Within limit
Employee C	48	12	At weekly cap
Employee D	48	14	Requires review

An employee showing 14 overtime hours should trigger a compliance review because the Regulation states that overtime must not exceed 12 hours per week.

Employer Overtime Compliance Checklist

Employers can use this checklist when processing weekly attendance and payroll:

• Track standard working hours.
• Track overtime separately from normal hours.
• Monitor the 12-hour weekly overtime cap.
• Obtain mutual agreement for overtime.
• Record overtime approvals.
• Check daily working-hour patterns.
• Maintain required daily and weekly rest periods.
• Apply the correct overtime payment.
• Identify qualifying night overtime.
• Identify public-holiday work.
• Maintain accurate attendance and overtime records.

The Department of Labour's current publications page continues to list the Regulations on Working Conditions 2022 alongside the Labour and Employment Act 2007 and other labour regulations.

How Payroll Software Can Help

Payroll and attendance software can automatically monitor weekly overtime.

A typical workflow is:

Clock-in/out → Calculate working hours → Identify overtime → Total weekly overtime → Check 12-hour threshold → Calculate payment → Process payroll

For example:

• Standard working hours: 48
• Overtime worked: 9
• Remaining overtime capacity under the stated weekly cap: 3 hours

This allows HR teams to identify employees approaching the weekly limit before approving additional overtime.

Frequently Asked Questions

What is the maximum weekly overtime in Bhutan?

The Regulation on Working Conditions 2022 states that overtime must not exceed 12 hours per week.

Can an employee work 12 hours of overtime every week?

The Regulation sets 12 hours as the weekly overtime ceiling and requires overtime to be performed by mutual agreement. Employers should also comply with applicable rest-period and other working-condition requirements.

What are Bhutan's standard weekly working hours?

Standard working hours must not exceed 48 hours per week, with a daily standard limit of 8 hours under Section 161 of the 2022 Regulation.

Is overtime paid at 1.5 times the normal rate?

Not for every type of overtime. Section 162 sets overtime payment at no less than the normal rate, while qualifying night overtime and public-holiday work receive an additional 50% under Sections 165 and 166.

Does overtime require employee agreement?

Yes. Section 164 states that overtime work must be performed through mutual agreement between the employer and employee.

Conclusion

Under Bhutan's Regulation on Working Conditions 2022, the maximum overtime limit is 12 hours per week. This is separate from the standard working-hour limit of 8 hours per day and 48 hours per week. Overtime must also be mutually agreed upon and appropriately recorded and paid.

For employers, effective compliance means monitoring daily hours, weekly hours, overtime, rest periods and overtime payments together rather than looking at the overtime total alone. Attendance and payroll software can help HR teams identify employees approaching the 12-hour weekly cap and maintain consistent payroll records.

This content is for general informational purposes and is not legal advice. Employers should verify the latest Bhutanese labour regulations and Department of Labour notifications before implementing overtime policies.