Overtime Tax: Are Overtime Hours Taxed in 2025?

Updated on January 1, 2025 – Directorate for Legal and Administrative Information (Prime Minister)

If you’re wondering about it and how it applies to your 2024 income, here’s what you need to know. While the 2025 tax return process is in place, tax forms, online services, and official documentation are still pending release. They will be made available as soon as possible.

Additionally, since the 2025 budget law was not enacted before the start of the year, the government is continuing tax collection under Law No. 2024-1188, passed on December 20, 2024. This law allows tax collection without changes to income tax brackets until an official budget is approved. If the new budget modifies it’s regulations, this page will be updated accordingly.

How Is Overtime Taxed in 2025?

Overtime pay must be declared, whether you are a private-sector employee or a public servant (state, territorial, or hospital staff).

For the 2024 tax year, overtime tax exemption applies to earnings up to €7,500 (net taxable income). This means that overtime pay up to this threshold is not subject to income tax.

Some overtime tax Examples

Example 1: Overtime Within the Exemption Limit

• You earned €1,500 gross (approximately €1,215 net taxable) in overtime during 2024.
• Since this amount is within the €7,500 overtime tax exemption, it is fully tax-free.

Example 2: Overtime Exceeding the Exemption Limit

• You earned €9,800 gross (approximately €7,938 net taxable) in overtime in 2024.
• The first €7,500 is exempt from overtime tax, but the excess €438 (€7,938 – €7,500) is taxable.

Additional Considerations

✔ RTT Compensation & it
The €7,500 exemption cap also includes compensation for RTT (Reduction of Working Time) days that you voluntarily gave up under an agreement with your employer.

✔ Part-Time Workers & it
If you work part-time, any extra hours worked beyond your contracted schedule are also covered by the overtime tax exemption.