Overtime calculator: how to work out your overtime pay

Published 2026-11-03

Quick answer

Overtime pay is usually the hours above a set threshold multiplied by a higher rate. Split your hours into regular and overtime, apply the rate your contract or local rules set, then add both parts together. Thresholds and multipliers differ by country and job, so check your local rules.

Overtime is easy to calculate once you know two numbers: where overtime starts and what rate applies. Everything else is multiplication.

How is overtime pay calculated?

Take your total paid hours, subtract the overtime threshold to get the overtime hours, and multiply those by the overtime rate. The regular hours are paid at the regular rate.

Worked example: 45 hours in a week, rate 20, overtime after 40 hours at 1.5 times (illustrative)
Part	Calculation	Amount
Regular hours	40 hours at 20	800
Overtime hours	5 hours at 30	150
Gross pay	800 plus 150	950

When does overtime start?

It depends on the country, the industry and your contract. Some rules count hours above a daily limit, others above a weekly one, and some jobs use agreed thresholds. In the United States, federal rules generally require overtime for covered, non-exempt employees after 40 hours in a workweek, at not less than one and one-half times the regular rate, and states can add rules. Other countries differ. Check your local rules.

How do premiums and overtime work together?

Some jobs also pay premiums for night, weekend or holiday work. Whether a premium and overtime combine on the same hour depends on your contract and local rules. Keep premium hours as separate lines so you can match them to your payslip.

ShiftPaybook lists base hours, overtime and night, weekend and holiday premiums as separate lines. Advanced overtime rules are part of Pro.

How can I check overtime on my payslip?

Total the weekly hours from your own log.
Find the point where overtime starts for your job.
Compare the overtime hours and the overtime rate with the payslip lines.
Check that the pay period dates match your own.

Frequently asked questions

What is the usual overtime rate?

One and a half times the regular rate is common, but it varies. Some places and jobs use double time or agreed rates, so check your contract and local rules.

Is overtime calculated daily or weekly?

It can be either, or both, depending on local rules and your contract. Check how your job counts it before you compare figures.

Does ShiftPaybook calculate overtime?

Yes. Overtime appears as its own line in the pay breakdown, using the rules you set for the job. Advanced overtime rules are a Pro feature, and results are gross estimates.

Are all employees entitled to overtime pay?

Not always. Some roles are exempt from overtime rules, and exemptions differ by country. Check your local rules or your contract.

Sources

Public bodies and Apple documentation that this guide draws on:

General information only, not legal, tax or payroll advice. Rules differ by country, region, contract and employer, so check your local rules before relying on a figure.