Overtime Calculator
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How to Use Our Overtime Calculator
Our tool simplifies complex math:
Enter Regular Hourly Rate
Input Standard Weekly Hours
Add Monthly Overtime Hours
Select Multiplier (1.5x, 2x, or custom)
Pro Tip: Bookmark this page to:
Verify employer payroll calculations
Negotiate fair overtime compensation
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How to Calculate Overtime for Monthly Salary Employees
Understanding how to calculate overtime pay is crucial for both employees and employers. With labor laws varying by country and complex pay structures, our free Overtime Pay Calculator simplifies the math while this guide explains everything you need to know about overtime regulations, calculations, and maximizing your earnings.
What Is Overtime Pay?
Overtime pay refers to the additional compensation employees receive for working beyond their standard hours. In most Tier 1 countries like the US, Canada, and the UK, overtime is legally mandated at 1.5x the regular hourly rate (time-and-a-half), though some situations require 2x pay (double time).
Key Terms to Know:
Regular Hours: Standard working hours per week (typically 35-40 hours)
Overtime Threshold: The hour limit triggering overtime pay (e.g., >40 hours/week in the US)
Multiplier: The rate applied to base pay for overtime (1.5x, 2x, etc.)
FLSA: Fair Labor Standards Act (US overtime law)
Working Time Directive: EU/UK overtime regulations
How Overtime Pay is Calculated: The Formula Explained
Our overtime calculator uses this universal formula:
Total Overtime Pay = Overtime Hours × Hourly Rate × Multiplier
Step-by-Step Breakdown
Determine Hourly Rate
For salaried employees:
Hourly Rate = Annual Salary ÷ 52 Weeks ÷ Regular Hours/Week
Example: 60,000/year÷52÷40=28.85/hour
Identify Overtime Hours
Hours worked beyond the legal threshold (varies by country):
US/Canada: >40 hours/week
UK: >48 hours/week (opt-out required)
Australia: >38 hours/week
Apply the Correct Multiplier
Standard overtime: 1.5x hourly rate
Holidays/Sundays: 2x rate in many jurisdictions
California: Daily overtime (>8 hours/day = 1.5x, >12 hours/day = 2x)
Calculate Total Earnings
Total Pay = Regular Pay + (Overtime Hours × Hourly Rate × Multiplier)
Country-Specific Overtime Laws
1. United States Overtime Rules
Under the FLSA:
1.5x pay for hours over 40/week
Exemptions: Salaried employees earning >$35,568/year
State Variations:
California: Daily overtime + 7th consecutive day = 1.5x/2x
Texas: No daily overtime requirement
Case Study: A Texas nurse earning $30/hour works 50 hours in a week:
Regular pay: 40 × 30=1,200
Overtime: 10 × 30×1.5=450
Total: $1,650
2. United Kingdom Overtime Rules
48-hour/week limit (unless employee opts out)
No legal overtime rate – determined by employment contracts
Typical practice: 1.25x-1.5x for nights/weekends
3. Canada Overtime Rules
Varies by province:
Ontario: 1.5x after 44 hours/week
Alberta: 1.5x after 8 hours/day or 44 hours/week
Federal: 1.5x after 40 hours
4. Australia Overtime Rules
1.5x for first 2 overtime hours
2x thereafter
Sundays/Public Holidays: Up to 2.5x pay
Common Overtime Scenarios (With Examples)
Scenario 1: Retail Worker (Weekly Overtime)
Hourly wage: $15 (USD)
Hours worked: 47 hours
Calculation:
Regular pay: 40 × 15=600
Overtime: 7 × 15×1.5=157.50
Total: $757.50
Scenario 2: Emergency Double Time (Healthcare)
Hourly wage: $45 (AUD)
Hours worked: 14-hour shift on Christmas
Calculation:
First 2 hours: 2 × 45×1.5=135
Next 12 hours: 12 × 45×2=1,080
Total Overtime: $1,215
Scenario 3: Tech Employee (Exempt vs. Non-Exempt)
Salaried developer: $120,000/year = No overtime
Hourly developer: 60/hour×50hours=60×40 + (60×10×1.5)=∗∗3,300**
5 Mistakes to Avoid When Calculating Overtime
Misclassifying Employees: Exempt vs. non-exempt status errors
Ignoring Daily Overtime: Used in CA, NV, and other states
Forgetting Non-Discretionary Bonuses: Must be included in “regular rate” calculations
Miscalculating Salaried Hourly Rates:
Incorrect: Monthly salary ÷ 4 weeksCorrect: Annual salary ÷ 52 weeks ÷ standard hoursOverlooking Meal Breaks: Unpaid 30-minute breaks may affect overtime thresholds
Frequently Asked Questions
Q: Is overtime mandatory for employers?
A: In most Tier 1 countries, yes – once an employee crosses the legal hourly threshold.
Q: Do salaried employees get overtime?
A: Only if they earn below the exemption threshold ($35,568/year in the US).
Q: How is overtime taxed?
A: Taxed as ordinary income, though some countries have higher withholding rates for bonuses/overtime.
Q: Can I refuse to work overtime?
A: Generally yes, unless specified in your employment contract.
Maximizing Your Overtime Earnings
For Employees:
Track hours with apps like Toggl or Hubstaff
Understand company policies for holiday/weekend rates
Negotiate higher multipliers for undesirable shifts
For Employers:
Use automated payroll software (e.g., Gusto, ADP)
Audit classifications annually to avoid lawsuits
Consider “comp time” (time off instead of pay) where legal
Recent Changes in Overtime Laws
US (2024): Proposed raise of exemption threshold to $55,000/year
EU (2023): Right to disconnect laws reducing unpaid overtime
Australia (2024): “Same job, same pay” bill affecting casual worker overtime
Why Trust Our Calculator?
Our tool is:
✅ Updated for 2025 tax laws
✅ Customizable for country-specific rules
✅ Mobile-friendly for on-the-go calculations
✅ Used by 150,000+ employees and HR professionals
Try it now to instantly calculate your overtime pay and ensure you’re being paid fairly. Bookmark this page or share it with coworkers to spread financial literacy in your workplace!