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Is overtime taxed on income?

Verified 01 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

Overtime earned in 2020 is exempt from income tax up to €5 000 per year.

Overtime beyond this limit is subject to tax.

The annual limit is increased if overtime has been worked during the health emergency period.

General case

The annual limit is increased to €7,500 if overtime or overtime work was performed between March 16 and July 10, 2020 inclusive.

Exemption for overtime or overtime performed outside this period (1to January-15 March and 11 July-31 December) may not exceed the €5 000 per year and per employee.

Guyana and Mayotte

The annual limit is increased to €7,500 if overtime or overtime work was performed between March 16 and September 17, 2020 inclusive.

Exemption for overtime or overtime performed outside this period (1to January-15 March and 18 September-31 December) may not exceed the €5 000 per year and per employee.

  Please note : exempt overtime is now pre-filled on your return. If you have multiple employers and exceed the limit, you must report the surplus with your salaries.