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Overtime base, premium and gross pay: avoid counting the premium twice

Five overtime hours at USD 20 and 1.5× are worth USD 150 in total. Of that, USD 100 is base pay and USD 50 is the extra premium. With 40 regular hours, gross pay is USD 950, not USD 1,000.

Worked comparison

The multiplier covers the whole overtime hour: rate × hours + rate × hours × (multiplier − 1). Here gross can be read as regular 800 + total overtime 150 = all-hour base 900 + premium 50 = USD 950. These are two views of the same amount. Another two hours at 2× contribute USD 80, raising gross to USD 1,030.

This table scrolls horizontally on small screens.

Overtime base, premium and gross pay: avoid counting the premium twice
ComponentFormulaAmount
Regular pay40 × 20USD 800
OT base5 × 20USD 100
OT premium5 × 20 × 0.5USD 50
Total OT100 + 50USD 150
Gross800 + 150USD 950

A mistake to avoid

800 + 150 + 50 = 1,000 counts the premium twice. Similarly, entering the same two hours in both tiers would double-count work. “Effective hourly rate” is gross divided by all regular and overtime hours: 950 ÷ 45 ≈ 21.11, not the USD 30 overtime rate.

Apply it to your calculation

  1. Enter the base hourly rate, known regular hours and overtime hours.
  2. Choose the multiplier; use the second tier only for additional hours paid at another multiplier.
  3. Read OT base, premium and total together. Check that regular plus total OT equals gross before copying or printing.

Example inputs: review, then calculate: Overtime Pay Calculator

Sources and limits

  • Calculation rules

All amounts are before taxes and deductions. The tool does not decide which hours legally qualify for overtime. Optional period projections repeat the entered pattern using 52 weekly, 26 biweekly, 12 monthly or one annual period; those assumptions are separate from salary working-week equivalents.

Example notes updated: 2026-10-12

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