Overtime Hours Calculator

How to calculate overtime?

Overtime calculations are generally based on specific daily and weekly thresholds. Daily overtime often applies to hours worked beyond 8 in a single shift, while weekly overtime applies to the total time worked exceeding 40 hours in a standard workweek.

Total Earnings = (Regular Hours % Rate) + (OT Hours % Rate % 1.5) + (DT Hours % Rate % 2.0)

Using the Overtime Calculator: an example

Consider a scenario where an employee works 50 hours in one week with a standard 8-hour daily limit.

Step-by-step calculation:

1. Regular Time: The first 40 hours of work are paid at the base hourly rate.
2. Overtime (OT): Hours between 40 and the maximum threshold (often 1.5x pay).
3. Double-Time (DT): Extremely long shifts or hours on specific days may qualify for 2.0x pay.

By following these steps, you ensure all worked hours are categorized and compensated accurately according to labor standards.

Frequently Asked Questions

What is the difference between OT and Double-Time?

Overtime (OT) is typically 1.5 times your regular rate for hours over 40 a week. Double-Time (DT) is twice your regular rate and is usually applied to hours worked over 12 in a single day or for work on the seventh consecutive day of the week.

Does the weekly limit include OT hours?

No, the 40-hour weekly limit refers to regular working hours. Once you have worked 40 regular hours, any additional time is categorized as overtime. Note that hours already paid as daily overtime typically do not count toward the 40-hour weekly overtime trigger.

What happens if I work on a holiday?

Holiday pay depends on your specific employment contract or local labor laws. Many employers pay a premium rate for holiday work, which might be handled similarly to overtime or double-time regardless of your weekly totals.