Overtime Pay Calculator

Gross pay once overtime rates are applied, across a week or a month of varied shifts.

In short

Overtime pay is the hourly rate multiplied by the overtime multiplier, then by the overtime hours. At fifteen pounds an hour, four hours at time and a half adds ninety pounds. Whether hours count as overtime depends on your contract and local law, not simply on working past your usual finish.

Gross pay

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Basic pay
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Overtime pay
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Overtime hours
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Effective hourly rate

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The calculation

basic    = rate x hours up to the threshold
overtime = rate x multiplier x hours above it
gross    = basic + overtime

At 15 an hour with a 40 hour threshold, working 48 hours at time and a half gives 600 basic plus 180 overtime, so 780 gross. Your effective rate for the week is 16.25 an hour.

Note that the multiplier applies to the whole overtime hour, not just the premium portion. Time and a half means 22.50 per overtime hour, not 15 plus 7.50 of extra.

Overtime rules vary enormously

WhereStatutory position
United StatesTime and a half beyond 40 hours a week for non-exempt employees under federal law. Some states add daily thresholds.
United KingdomNo statutory overtime premium. Pay is whatever the contract says, subject to the average staying above minimum wage.
EUThe Working Time Directive caps average weekly hours but leaves premiums to member states and contracts.
AustraliaSet by the relevant award or agreement, commonly 1.5x then 2x.
IndiaTypically twice the ordinary rate under the Factories Act for covered workers.

The practical consequence: read your contract. Many salaried roles include a clause requiring reasonable additional hours with no extra pay at all, which makes the effective hourly rate a more useful number than the salary.

Salaried does not always mean no overtime

In the US, whether you get overtime depends on being classified as exempt or non-exempt, which turns on your duties and salary level rather than simply being paid a salary. Misclassification is common and recoverable, sometimes for years of back pay.

If you are salaried, working long hours and doing largely non-managerial work, it is worth checking the classification rather than assuming.

The tax misconception

Overtime is not taxed at a special rate. It is ordinary income.

The belief that it is comes from withholding. Payroll systems often calculate deductions as though every paycheque reflected your usual earnings, so a big overtime week is withheld as if you earned that much every week, pushing more into higher bands. It corrects itself over the year or at filing.

You may genuinely cross into a higher marginal band, but only the portion above the threshold is taxed at the higher rate. Extra work never leaves you with less.

Keep your own record

Payroll errors are usually genuine and only ever corrected when someone notices. Record actual start and finish times the same day, note breaks separately, and check each payslip against your own figures. The time duration calculator handles shifts crossing midnight and converts to the decimal hours payroll uses.

Gross pay only, before tax and deductions. Overtime entitlement depends on your contract and local law.

Frequently asked questions

How is overtime pay calculated?

Multiply your hourly rate by the overtime multiplier, then by the overtime hours. At 15 an hour, four hours at time and a half is 15 x 1.5 x 4, or 90. Add that to your basic pay for the gross total.

What counts as overtime?

That depends on your contract and local law, not simply on staying late. In the US, federal law requires time and a half beyond 40 hours a week for covered employees. In the UK there is no statutory overtime premium at all, so it is whatever your contract says. Check before assuming.

What is time and a half?

1.5 times your normal hourly rate. Double time is 2 times, and some agreements use 1.25 for evenings or 2.5 for public holidays. The multiplier applies to the whole overtime hour, not just the extra portion.

Is overtime taxed differently?

Generally no. It is ordinary income taxed at your normal rates. The common belief that it is taxed more usually comes from payroll withholding treating one large paycheque as though it were your regular income, which evens out over the year.

Are these figures before or after tax?

Before. This calculates gross pay. Deductions depend on your country, allowances and circumstances, so use your national tax authority for take-home.