This overtime calculator is a tool that finds out how much you will earn if you have to stay longer at work. All you have to do is provide some information about your hourly wages, and it will calculate the total pay you will receive this month.
Keep reading to learn helpful information about overtime rules and overtime pay according to labor law regulations. What is more, you will discover what is time and a half pay, who is an exempt employee is, and some examples of exempt jobs.
Also, we prepared for you a step-by-step tutorial showing how to calculate the overtime pay. Scroll down to learn more!
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Overtime – formal definition
Almost everybody in the working-age population knows and understands what is overtime. In some professions, working overtime is very common (or even mandatory!). Examples of personnel often working overtime might be construction workers, IT professionals, plant managers, and investment-related workers.
Besides all of that, let's take a look at the formal overtime definition. Overtime is the amount of time that an employee works beyond regular working hours. Or, in other words – overtime refers to any hours that someone worked exceeding their typically scheduled work-time. Moreover, the term overtime is often used to name the payment received for extra working hours.
The number of normal working hours for a particular job position is established to balance the employee's health, productivity over the workday/shift, and general economic factors. It's known that the human organism is naturally limited and cannot sustain the same level of productivity in the 8th or 10th hour of work as at the beginning of the shift.
Depending on the job type, the number of regular working hours might be determined by the best practices of a profession (based on the trade experience), agreements between sides, or legislation. Whatever it is, it has to fulfill the national or local labor law regulations. Most commonly, a workday is 8 hours, and a workweek equals 40 hours.
Many countries design their labor laws to prevent employees from being forced to work long overtime hours. Furthermore, they usually provide regulations of overtime compensation.
What is time and a half?
Overtime payments are commonly called the overtime premium or the overtime rate of pay. The most usual rate for overtime hours is time and a half, and that is 50% more than the employee's standard wage. It means that for every hour of overtime, you receive an equivalent of 1.5 the regular hourly rate. So, if you want to repair your personal budget, do some overtime work!
Keep in mind that this value may vary across countries and companies, so make sure to enter the correct multiplier into the overtime calculator.
According to the FLSA rules (Fair Labor Standards Act), nights, weekends, or holidays do not require to be paid as overtime (unless the worker would cross the regular hours' threshold). Many employers state additions to regular wages for hours done on evenings, weekends, or holidays on their own.
Formulas for overtime pay
You can use some simple formulas to calculate the overtime salary. First of all, you have to calculate your hourly overtime wages:
Where stands for hourly overtime pay, for the hourly regular pay, and for the multiplier (most typically 1.5).
Once you know this value, you can calculate your total overtime pay:
Where is the overtime pay and is the number of overtime hours in a month.
Finally, if you want to find your total salary at the end of the month, you have to add it to your regular salary:
Where stands for total pay and stands for regular pay. The second one equals the regular hourly pay multiplied by the number of working hours per month.
💡 We also have our salary converter or our hourly to salary calculator if you need help converting your monthly rate or annual rate to hourly, daily or weekly rate.
How to calculate overtime pay?
- Begin with specifying your regular pay. Let's assume you earn $10 an hour. Input this value into the overtime calculator. If you don't know what it is, you can use this salary to hourly calculator.
- The next step is determining the number of hours you usually work per month. Assuming four weeks, 40 hours each, you can enter 160 hours per month.
- Change the multiplier to correspond to your company's overtime policy. For example, your company may pay the usual time and a half rate – the multiplier is equal to 1.5.
- Determine the number of hours you worked overtime this month. Let's say you worked 30 hours overtime.
- Our overtime calculator will automatically find all other values – your regular pay, overtime pay, and their sum as the total salary you will receive this month.
Once you have calculated your total pay, you can decide what to do with it – are you planning to spend it or maybe invest it? You can check out our investment calculator if you decide to invest part of your total pay.
🙋 Make sure to use our gross to net calculator to determine how much you could take home from your total pay after the deduction of taxes. Or you might find our budget calculator, especially when you plan to monitor or track your expenses.
Exemptions from overtime pay
Overtime laws obligate employers to pay their workers a greater rate than the standard wage for regular hours. As mentioned above, the typical threshold in most countries (including the U.S.) is 40 work hours a week. Whatever the limit is (some laws contain other thresholds), the employer should compensate for each hour exceeding the normal threshold.
However, in the U.S., according to the Fair Labor Standards Act (FLSA), specific jobs are excluded from overtime compensation requirements. They are called exempt, and employers are not obligated to pay overtime in these cases. Accordingly, employees who are generally eligible for overtime compensation are referred to as non-exempt employees.
In addition to excluding particular workers from overtime rules, some overtime laws list specific industries where employers are exempt from overtime requirements.
Exempt employees – formal requirements
In the U.S., exempt jobs are determined by the. There are many requirements to be fulfilled to consider an employee as exempt one. Let's take a look at executive and administrative workers and how the exemption works for them.
To qualify for the executive employee exemption, all of the following tests must be met:
- The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 per week;
- The employee's primary duty must be managing the enterprise or managing a customarily recognized department or subdivision of the enterprise;
- The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and
- The employee must have the authority to hire or fire other employees. Or at least the employee's suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees must be given particular weight.
To qualify for the administrative employee exemption, all of the following tests must be met:
- The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455 per week;
- The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and
- The employee's primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
Keep in mind that while someone gets a salary, it does not automatically determine them as exempt. A salaried employee might still be a non-exempt worker. Every individual has to perform qualifying duties to be classified as an exempt one.
Exempt jobs – examples
Below you can find a few other examples of job types that are excluded from overtime payments:
- Babysitters on a casual basis
- Companions for the elderly
- Fruit & vegetable transportation employees
- Local delivery drivers
- Newspaper delivery
- Police officers in departments with less than five officers
- Railroad employees
- Seamen on vessels
- Taxicab drivers
How do I find my overtime pay?
Here are two different ways to calculate overtime pay:
- Find the overtime hourly pay.
- Calculate the total overtime hours.
- To calculate the overtime pay, multiply the overtime hours by the overtime hourly pay.
Or, if you do not know the hourly overtime pay:
- Calculate the total overtime hours.
- If you know the overtime pay multiplier, multiply your regular hourly pay by the pay multiplier.
- Multiply the total overtime hours by the answer in 2.
How do I calculate my monthly overtime pay?
To calculate the monthly overtime pay follow these steps:
- Find your overtime pay multiplier say 1.5.
- Multiply it by the total overtime monthly hours, eg. 10.
- Multiply the result by your regular monthly pay: $1,000.
- Finally, divide the result by the total regular hours you work each month: 15000/160.
The result is the monthly overtime payment: $93.75.
How much overtime pay would I get by working 10 hours more monthly?
Assuming your contract allows for time and a half, that is, an overtime pay multiplier of
1.5, and that you work a regular
160 monthly hours job,
10 hours of monthly overtime correspond to a total overtime pay of 9.38% of your monthly salary. To find this number:
- Calculate the product of the overtime monthly hours and the pay multiplier: `10 · 1.5 = 15).
- Divide the result by your regular monthly hours:
15/160 = 0.0938/.
- To find your pay, multiply the result by your monthly salary. The result corresponds to 9.38% of that amount.
What does "exemot status" mean?
Exempt status means that a job doesn't include overtime payment and/or that the employer can pay less than the minimum wage. Many exempt jobs fall in the first category only, with managerial and executive positions often exempt from overtime. Other exempt jobs are hourly jobs, jobs in transportation and delivery, sales, investments, and computer-related jobs.