Overtime Pay Calculator

This Overtime Pay Calculator helps you calculate overtime wages accurately based on your hourly rate, total hours worked, and overtime multiplier. It is commonly used by employees, HR professionals, payroll teams, and contract workers to estimate extra earnings beyond regular work hours.

Along with instant overtime calculation, this guide explains how overtime pay works, common overtime rules, examples, legal considerations, and how to avoid payroll mistakes.

Calculate Overtime Pay

What Is Overtime Pay?

Overtime pay refers to additional wages earned when an employee works beyond their standard working hours. In most organizations, standard hours are 8 hours per day or 40 hours per week.

Any work performed beyond this threshold is classified as overtime and is paid at a higher rate to compensate employees for extra effort and time.

How Overtime Pay Is Calculated

Overtime pay is calculated using this formula:

Overtime Pay = Hourly Rate × Overtime Hours × Overtime Multiplier

The most common overtime multiplier is 1.5×, but some employers offer 2× double pay for holidays, weekends, or night shifts.

Overtime Pay Examples

Hourly Rate OT Hours Multiplier Overtime Pay
$20101.5×$300
$2581.5×$300
$305$300
$15121.5×$270

Overtime Rules in Different Work Scenarios

Weekly Overtime

Many countries apply overtime rules weekly. Any work beyond 40 hours per week qualifies as overtime.

Daily Overtime

Some organizations calculate overtime daily, where working more than 8 hours a day triggers overtime pay.

Weekend and Holiday Overtime

Weekend and holiday work may attract higher multipliers, sometimes even double pay.

Who Is Eligible for Overtime Pay?

Hourly employees are usually eligible for overtime, while salaried employees may or may not qualify depending on job role, labor laws, and employment contracts.

Common Overtime Pay Mistakes

  • Using incorrect hourly rate
  • Ignoring multiplier rules
  • Miscounting overtime hours
  • Not separating regular and overtime pay

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Frequently Asked Questions

Is overtime mandatory?
This depends on company policy and labor laws.

Is overtime taxed differently?
Overtime pay is taxed the same as regular income in most regions.

Can salaried employees earn overtime?
Some salaried roles qualify depending on law and contract.

Is this calculator free?
Yes, it is completely free to use.

Disclaimer

This calculator provides estimates only. Always follow official labor laws and company payroll policies.