How Overtime Pay is Calculated
Overtime is standard compensation paid at a higher rate for working beyond regular statutory thresholds.
Overtime Formulas:
1. Overtime Hourly Rate = Base Hourly Rate × Overtime Multiplier (1.5 for time-and-a-half)
2. Overtime Pay = Overtime Hourly Rate × Overtime Hours
3. Total Gross Earnings = (Base Hourly Rate × Regular Hours) + Overtime Pay