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Tax & Salary

Overtime Pay Calculator

Calculate gross pay from regular and overtime hours at any overtime multiplier, including double-time.

USD
h

Paid at the base rate

h
×
h

Optional second tier, always paid at 2×

Total gross pay
$1,040.00
Regular pay
$800.00
Overtime pay
$240.00
Effective hourly rate
$21.67
Pay tierHoursHourly ratePay
Regular hours40 h$20.00$800.00
Overtime at 1.5×8 h$30.00$240.00
Total48 h$21.67$1,040.00

💡 Premium hours add $240.00 to this period — 30% on top of your regular pay — lifting the average hour from $20.00 to $21.67.

Overtime thresholds, multipliers, and eligibility are set by local law and by your contract or collective agreement — some places count overtime past a weekly limit, others past a daily one. This calculator applies whatever rate and multiplier you enter.

How overtime pay is calculated

Overtime pay is your base hourly rate multiplied by a premium multiplier, multiplied by the number of overtime hours. Everything else is arithmetic on top of that. Your regular pay is the base rate times regular hours; your gross for the period is the two added together. At 20 an hour with 40 regular hours and 8 overtime hours at 1.5×, that's 800 regular plus 240 overtime, for 1,040 gross across 48 hours.

Two premium tiers, and the blended rate

Many pay agreements stack tiers: hours past a first threshold earn time and a half, and hours past a second — very long days, seventh consecutive days, public holidays — earn double time. Enter both and the calculator prices each tier separately, then reports the effective average hourly rate: total gross divided by total hours. That blended figure is the useful one for deciding whether an extra shift is worth taking, and for comparing a high-base job with modest overtime against a lower-base one with a lot of it.

The rules vary — check yours

The threshold at which overtime begins, the multiplier that applies, and who is eligible at all are set by national or regional law and then often improved on by employment contracts and collective agreements. Some places count overtime weekly, past a set number of hours; others count it daily, past a set number of hours in one shift; many treat night work, weekends, and public holidays as their own premium categories. Some roles are excluded from statutory overtime entirely. This calculator does the arithmetic for whatever rate and multiplier apply to you — your contract or local labour authority is the place to confirm which ones those are.

Frequently asked questions

+What does time and a half mean?

It's an overtime multiplier of 1.5 — each overtime hour pays one and a half times your normal hourly rate. At a base rate of 20, an overtime hour pays 30, so eight overtime hours add 240 to your gross pay. Double time is a multiplier of 2, and some agreements use 1.25 or 1.75 for particular shifts.

+How do I work out overtime pay if I'm on a salary?

Convert the salary to an hourly rate first, then use it as the base. Divide annual pay by the number of paid weeks and again by your contracted weekly hours — a salary of 52,000 over 52 weeks at 40 hours a week is 1,000 ÷ 40 = 25 an hour. Whether a salaried role qualifies for overtime at all depends on local law and your contract.

+Is overtime taxed at a higher rate?

There is no separate tax on overtime in most systems — it's ordinary income and taxed like the rest of your pay. A big overtime week can still look over-taxed on the payslip, because withholding is often calculated as if that pay period repeated all year, pushing you temporarily into a higher band. It usually evens out over the tax year.

+What is the effective hourly rate?

It's your total gross pay divided by your total hours, blending the base rate and every premium tier into one number. It answers the question overtime multipliers obscure: what is each hour of this week actually worth on average? Comparing it to your base rate shows exactly how much the overtime lifted your earnings.

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