What is hour bank (banco de horas)?
The hour bank (banco de horas) is the system in which overtime hours, instead of being paid with a premium, are accumulated for future compensation as time off or reduced hours. The balance works both ways: extra hours become the employee's credit; early departures and authorized absences, debit.
Since the 2017 labor reform, the bank can be set up by individual written agreement, with compensation within 6 months; by collective agreement, the deadline extends to 1 year. Compensation within the same month can even be arranged tacitly.
Hours not offset within the deadline must be paid as overtime, with a premium of at least 50%. On termination, any credit balance is settled the same way, calculated on the salary at the termination date. Without reliable time tracking, the bank becomes a source of liability — records and transparency are essential.
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An employee with a base hourly rate of R$ 15 accumulates 20 overtime hours in the semester. If offset with time off within the deadline, nothing is paid. If the deadline lapses (or they are terminated) with the balance open, the company pays 20 × R$ 22.50 (hour + 50%) = R$ 450.
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