How to calculate overtime pay
Overtime pay is the extra pay for hours worked beyond someone’s regular hours. The overtime formula is:
- Find the hourly rate. Use the hourly rate, or divide a monthly salary by working days and hours per day to get one.
- Count the overtime hours. Subtract the regular hours (for example 40 a week or 8 a day) from the hours actually worked, after unpaid breaks.
- Work out the overtime rate. Multiply the hourly rate by the overtime multiplier: 1.5 for time and a half, 2 for double time.
- Multiply. Overtime pay = overtime hours × overtime rate. Add regular pay to get total pay.
Example: an employee paid $20 an hour works 48 hours in a week with a 40-hour standard week. Overtime hours are 48 − 40 = 8. At time and a half the overtime rate is $20 × 1.5 = $30, so overtime pay is 8 × $30 = $240. Regular pay is 40 × $20 = $800, making the week’s total $1,040.
Time and a half and double time
Time and a half is overtime paid at 1.5 times the normal rate, the most common overtime rate in the US and many company policies. Double time is 2 times the normal rate, often used for public holidays, rest days, or under factory laws in South Asia. Some policies use 1.25× for the first few overtime hours and more after that; enter each band separately in the calculator and add them up.
How to calculate overtime from a monthly salary
Salaried staff don’t have an hourly rate on their payslip, so work one out first (the per day salary calculator does this for 30, 26 or working days):
Example: a monthly salary of 52,000 with 26 working days of 8 hours gives 52,000 ÷ 26 ÷ 8 = 250 an hour. At double time, the overtime rate is 500 an hour, so 10 overtime hours in the month pay 5,000. Employers differ on the basis: some divide by 26 days, some by 30, and some by a fixed number of hours such as 208. Use whichever your contract or policy states, and use it the same way every month.
Overtime rules by country
When overtime starts and how much extra it pays depend on local law and the employment contract. A quick summary of common rules (a general guide, not legal advice, so confirm the current rule that applies to your workplace):
| Country / law | Overtime starts | Overtime rate | Notes |
|---|---|---|---|
| United States (FLSA) | Over 40 hours in a work week | 1.5× regular rate | Some states (e.g. California) also count daily overtime and double time. |
| India (Factories Act, 1948) | Over 9 hours a day or 48 a week | 2× ordinary rate | Shops and offices follow state Shops & Establishments Acts. |
| Pakistan (Factories Act, 1934) | Over 9 hours a day or 48 a week | 2× ordinary rate | Shops and offices follow provincial Shops & Establishments laws. |
| United Arab Emirates | Beyond normal working hours | 1.25× (1.5× at night, 10pm–4am) | Set by the UAE Labour Law; rest-day work has its own rules. |
| United Kingdom | Set by the employment contract | No legal minimum premium | Average pay for all hours must not fall below the minimum wage. |
Overtime rate table
Overtime rates for common hourly rates, and what 10 hours of overtime at time and a half pays:
| Hourly rate | Time and a half (1.5×) | Double time (2×) | 10 hours at 1.5× |
|---|---|---|---|
| 10.00 | 15.00 | 20.00 | 150.00 |
| 15.00 | 22.50 | 30.00 | 225.00 |
| 20.00 | 30.00 | 40.00 | 300.00 |
| 25.00 | 37.50 | 50.00 | 375.00 |
| 30.00 | 45.00 | 60.00 | 450.00 |
| 40.00 | 60.00 | 80.00 | 600.00 |
| 50.00 | 75.00 | 100.00 | 750.00 |
Overtime formula in Excel and Google Sheets
With hours worked in B2, regular hours in C2 and the hourly rate in D2:
If your timesheet stores clock-in and clock-out times rather than hours, convert them to hours first with =(C2-B2)*24. The work hours calculator explains overnight shifts and breaks.
Tracking overtime for a whole team by hand gets error-prone fast. Clocked Live records check-in and check-out times, subtracts breaks, flags overtime against each person’s standard workday, and exports a monthly payroll-style report with overtime hours per employee.