Overtime Calculator

Overtime calculator 

Overtime calculator is used to determine how much money you will earn if you work more than your regular hours.  

What is Overtime?

Overtime refers to the additional time that an employee works after their normal working hours. The term is also used to describe the payment received for these extra working hours. The standard workweek is usually set at 40 hours in many countries.

Any time worked beyond this standard is considered overtime. The additional time is usually paid at a higher rate than the regular hourly wage. Many companies offer time-and-a-half overtime pay to their employees, while some companies provide double time and a half as overtime payment.

It may depend on the agreement between employers and workers. The reason for overtime is to reward employees for the extra time and effort they dedicate to their work beyond the regular schedule.

Formulas for overtime pay

A standard formula for calculating overtime pay is:

Overtime pay = Hourly rate × Overtime Multiplier x Total number of overtime hours worked

This overtime calculator uses the following formulas.

• Total regular pay = regular pay × regular work time
• Overtime Pay = Per hour salary × Overtime hours
• Total Pay = Total regular payment + Overtime Pay

How to calculate overtime pay?

Let us consider an example to learn how to determine the amount of overtime and the total salary.

Example:

John works as a technician at a manufacturing company. His regular pay rate is $25 per hour and he works 210 hours per month. He worked for 10 extra hours last week due to increased production demands. Determine his overtime pay and total earnings if the overtime rate is 1.5.

Solution:

Give data

Regular Pay = $25per hour

Normal worktime = 210 hours per month

Extra time pay multiplier = 1.5

Overtime hours = 10

Total Monthly Normal Pay

Regular Monthly Pay = Regular Hourly Rate × Regular Monthly Hours

= $25/h × 210 h

Total Regular Monthly Pay = $5250

Overtime Pay

Overtime Payment = Hourly Rate × Overtime Hours × Overtime Multiplier

= 25 × 10 ×1.5

= 250 × 1.5

Monthly extra time pay = $375

Total Payment

Total Pay = Regular Pay + Overtime Pay

= 5250 + 375

= $5625

This means John's overtime pay is $375 and his monthly salary is $5625.