How to calculate overtime pay
Overtime starts from your regular hourly rate. The premium depends on the rules that apply to your job.
The formula
hourly rate = regular pay for the period / regular hours in the periodtime and a half = hourly rate x 1.5double time = hourly rate x 2
Example with made-up numbers
Hourly rate 20. Six hours at time and a half: 6 x 30 = 180. Four hours at double time: 4 x 40 = 160.
What decides the premium
When overtime starts and which rate applies depend on your country, state, contract or collective agreement. Check the rules for your job before doing the math.
Time off in lieu
Some workplaces compensate extra hours with time off instead of pay. Then the key is a written balance: hours earned, hours taken and what is left, per person.
Good habits
- Log start and finish times every day.
- Check each payslip against your log.
- Keep official leave separate from overtime balances.
General information, not financial, tax or legal advice. Examples use made-up numbers.
Overtime & Time-Off Tracker
Log extra hours and see each person's balance of hours and days to take, kept apart from official leave.