How to Calculate Overtime
To calculate overtime pay: (overtime hours) × (regular hourly rate) × (overtime multiplier). Standard multipliers are 1.5x for weekday overtime beyond 8 hours or 40 hours per week, and 2x for weekend or holiday work.
The 6-step calculation process
- Identify the overtime threshold. In most jurisdictions, overtime kicks in beyond 8 hours per day or 40 hours per week.
- Determine the overtime multiplier. Typically 1.5x for regular weekday overtime and 2x for weekends or public holidays.
- Calculate the regular hourly rate. For salaried employees: monthly salary ÷ (working days × standard daily hours).
- Count overtime hours. Subtract standard hours worked from total hours worked.
- Calculate overtime pay. Overtime hours × (regular hourly rate × multiplier).
- Add to regular pay to get total gross pay.
Worked example
Employee earns $12/hour, worked 46 hours this week (40 regular + 6 overtime)
Regular pay = 40 × $12 = $480
Overtime pay = 6 × $12 × 1.5 = $108
Weekend hours = 4 × $12 × 2 = $96 (add if applicable)
Total gross pay = $480 + $108 = $588
Regular pay = 40 × $12 = $480
Overtime pay = 6 × $12 × 1.5 = $108
Weekend hours = 4 × $12 × 2 = $96 (add if applicable)
Total gross pay = $480 + $108 = $588
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