How to Calculate Overtime Pay
Calculating overtime pay helps ensure fair compensation for extra work hours. In many countries, employers must pay 1.5 times the regular rate for hours worked beyond standard 40-hour workweek. Our calculator helps employees and employers determine correct overtime wages, maintain legal compliance, and prevent payment disputes. Proper overtime calculation is crucial for payroll management and maintaining labor law standards.
Overtime Pay Calculator
Overtime Pay Formula
Standard overtime pay is calculated as: (Hourly Wage × 1.5) × Overtime Hours + (Hourly Wage × Regular Hours). This "time-and-a-half" calculation applies to hours worked beyond 40 hours per week in most cases. Some states may have different rules for daily overtime or double-time pay.
How to Use
Enter your hourly wage, regular hours worked (up to 40), and overtime hours. Click calculate to see total pay. The calculator automatically applies 1.5x rate to overtime hours. Review your local labor laws for specific overtime rules. Save results for your records or discuss with HR if numbers seem incorrect.
Calculation Process
1. Multiply regular hours by hourly wage for base pay
2. Multiply overtime hours by (hourly wage × 1.5) for overtime pay
3. Add both amounts for total compensation
4. Example: $20/hour wage, 40 regular hours, 5 overtime hours:
Regular pay: $800 + Overtime: $150 = Total $950