How to Use the Overtime Pay Calculator
The Overtime Pay Calculator computes your gross earnings including overtime at any rate — time and a half (1.5×), double time (2×), or a custom multiplier. It's useful for employees, payroll managers, and HR teams calculating weekly or monthly pay with irregular hours.
Enter your regular hourly rate, standard weekly hours, and overtime hours worked. Select your overtime rate (1.5× is standard in many countries, 2× for Sundays or bank holidays). The calculator shows your regular pay, overtime pay, and total gross earnings separately and combined.
An important nuance is that overtime rules vary significantly by country and employment contract. In the US, the Fair Labor Standards Act requires 1.5× for hours over 40/week for non-exempt employees, but has no federal double-time requirement. In the UK, there's no statutory overtime rate — it's contractual. Always check your employment contract.
📊 Worked Example
£14/hour, standard 37.5 hours, 8 hours overtime at time and a half:
- Regular pay: 37.5 × £14 = £525
- Overtime rate: £14 × 1.5 = £21/hr
- Overtime pay: 8 × £21 = £168
- Total gross: £693 this week
Common Use Cases
- ✅ Calculating your weekly gross pay with overtime hours
- ✅ Verifying your payslip includes overtime at the correct rate
- ✅ Planning whether taking overtime is worth it after tax
- ✅ Comparing time-and-a-half vs double-time offers for extra shifts
- ✅ Calculating payroll for employees who work variable overtime hours
- ✅ Working out annual earnings if overtime is regular
Frequently Asked Questions
What is the standard overtime rate?
In the US, federal law (FLSA) requires 1.5× the regular rate for hours over 40/week for non-exempt employees. In the UK, there's no legal requirement — it's whatever your contract states. Common rates are 1.25× (extra 25%), 1.5× (time and a half), or 2× (double time) for holidays.
Is overtime taxed at a higher rate?
Overtime is taxed at your marginal income tax rate, same as regular pay. If overtime pushes you into a higher tax bracket, you pay more tax on just the income above the threshold — not on all your earnings. Use a take-home pay calculator to see your after-tax overtime pay.
Do salary employees get overtime pay?
In the US, salaried employees classed as 'exempt' (typically managers and professionals earning above $58,656/year as of 2024) generally don't get overtime. Non-exempt salaried employees do. In the UK, salaried employees are entitled to overtime if their contract specifies it, but many contracts don't guarantee it.
What is the difference between regular time and comp time?
Some employers offer compensatory time off (comp time) instead of extra pay for overtime hours. In the UK, this is called 'time off in lieu' (TOIL). In the US, comp time is legal for public sector employees but generally not for private sector workers under FLSA.
How do I calculate the effective hourly rate including overtime?
Effective rate = Total earnings ÷ Total hours worked. If you work 45 hours at £12/hour base with 1.5× overtime: regular pay = 40 × £12 = £480, overtime = 5 × £18 = £90, total = £570 for 45 hours = £12.67 effective rate. Useful for comparing offers with different overtime structures.