Overtime Pay
Work out a week's pay with overtime at a higher rate.
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Formula
How the calculation works
Overtime pay is two separate multiplications added together, not one rate applied to a total. The regular hours are paid at the base rate, and only the overtime hours are paid at the higher one. At 20 an hour with 40 regular and 6 overtime hours at 1.5x, the regular part is 800 and the overtime part is 180, giving 980. Paying all 46 hours at 20 would give 920, which is 60 short -- that gap is the whole point of the premium.
The multiplier applies to the overtime hours alone, so the average rate you earn rises as the overtime share rises. With no overtime the average is exactly 20; with 6 of 46 hours at 1.5x it is about 21.30. That is why two weeks with the same total hours can pay differently: 46 hours split 40 and 6 pays more than 44 and 2, even though both are long weeks.
The tool refuses a multiplier below 1. That guard matters because a multiplier under 1 would pay overtime hours less than the base rate, which is not a real arrangement anywhere -- it is almost always a typing slip such as 0.5 for 1.5, and returning a plausible-looking low figure would hide the mistake.
Common mistakes
- Multiplying all hours by one rate. Adding 40 regular and 6 overtime into 46 and paying the base rate gives 920 instead of 980.
- Applying the multiplier to the whole week's hours rather than only the overtime portion, which inflates the pay far beyond the contract.
- Assuming the multiplier is always 1.5. It is set by contract and local law, and can be 1.25, 2, or a different rate on rest days and holidays.
When to use it
- Use it to check a payslip line by line: confirm the regular hours were paid at the base rate and the overtime hours at the agreed multiplier.
- It is not the tool for deciding what you are owed. That comes from your contract and local law; this only does the arithmetic once you know the rate.
Worked example
At 20 an hour, 40 regular plus 6 overtime at 1.5x totals 980.
Common questions
What multiplier is usual?
Time-and-a-half (1.5) is the common rule, doubling on holidays, but it varies by country and contract.
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