Calculating weekly overtime
Overtime calculations can get complicated quickly, especially when employees work irregular shifts. In most jurisdictions, overtime is calculated on a weekly basis. When total hours worked in a 7-day period exceed a certain threshold (usually 40 hours), the remaining hours are paid at a premium rate (typically 1.5x regular pay).
How the math works
To calculate total weekly pay:
1. Sum all hours: Add up all hours worked from Monday through Sunday.
2. Separate regular from overtime: Subtract the overtime threshold (e.g., 40) from total hours.
3. Calculate regular pay: Regular hours × Hourly rate.
4. Calculate overtime pay: Overtime hours × (Hourly rate × Multiplier).
5. Add them up: Regular pay + Overtime pay = Total pay.
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