Penalising overtime in the Danish civil service: does it work?
Publikováno: 27 November 1997
In Denmark's 1997 Budget, a 40% penalty tax on overtime payments was introduced in the civil service in order to reduce the level of overtime work. It was expected that this measure would lead to more jobs being created. According to figures from the Ministry of Finance, overtime payments have declined by 40% over the first three quarters of 1997. However, the question remains as to whether overtime work has merely taken another form and been transformed into unused time off in lieu, unpaid overtime work and permanent pay supplements.
In 1997, overtime working in the Danish civil service has been subject to financial penalties and overtime payments have consequently declined. However, the question remains as to whether it has merely been transformed into more time off in lieu, unpaid overtime and permanent pay supplements.
In Denmark's 1997 Budget, a 40% penalty tax on overtime payments was introduced in the civil service in order to reduce the level of overtime work. It was expected that this measure would lead to more jobs being created. According to figures from the Ministry of Finance, overtime payments have declined by 40% over the first three quarters of 1997. However, the question remains as to whether overtime work has merely taken another form and been transformed into unused time off in lieu, unpaid overtime work and permanent pay supplements.
According to the Ministry, the decline in overtime payment indicates that institutions have reorganised work and improved planning in order to avoid the penalty tax on overtime payment.
The Danish Lawyers and Economists Association (Danmarks Jurist- og Økonomiforbund, DJØF) has been unable to measure any improvement in employment. According to the shop stewards with whom the union spoke, the penalty tax has resulted in less overtime pay but an increase in time off in lieu, which for many employees can be impossible to take off. A classic situation is one where the job has to be done and where overtime payments cannot be afforded, and there is no time for specialist employees to take time off in lieu. Many employees therefore simply stay to complete the job without reporting the matter or complaining about overtime, out of loyalty and commitment. A number of ministries have institutionalised overtime by granting permanent pay supplements on top of the existing "stand-by" premium.
In 1996 overtime payments across 19 ministries amounted to DKK 135,240 million. After the introduction of the penalty tax on overtime payments, this figure dropped to DKK 81,658 million in 1997.
Eurofound doporučuje citovat tuto publikaci následujícím způsobem.
Eurofound (1997), Penalising overtime in the Danish civil service: does it work?, article.
