how to calculate overtime pay
How to Calculate OT Pay per Hour Correctly
Overtime pay mistakes are common when multipliers are applied incorrectly. This article shows the standard approach.
How to calculate using Overtime Pay Calculator
- Enter hourly rate, regular hours, overtime hours, and OT multiplier.
- Compute regular pay and overtime pay separately.
- Combine both components to get total period pay.
Overtime Pay Calculator formula
- Regular pay = regular hours x hourly rate.
- Overtime pay = overtime hours x hourly rate x overtime multiplier.
- Total pay = regular pay + overtime pay.
Worked example
- Rate $20/hour, regular 40h, overtime 10h at 1.5x.
- Regular pay = $800; overtime pay = $300.
- Total pay = $1,100.
Accuracy and interpretation notes
- Confirm legal multiplier and overtime threshold in your jurisdiction.
- Include shift differential separately if applicable.
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