What is overtime?

Overtime refers to the time that an employee works over and above their regular working hours. It typically involves working more than a certain number of hours in a workweek, often 40 hours and can result in additional pay for employees.

How is overtime pay calculated?

Overtime pay is usually calculated as a multiple of an employee's regular hourly wage. For example, if an employee's regular hourly wage is $20, and the overtime rate is time and a half, they would receive $30 per overtime hour ($20 x 1.5 = $30). Specific rules and regulations may apply depending on the jurisdiction.

Are salaried employees entitled to overtime pay?

Whether salaried employees are entitled to overtime pay depends on the laws and regulations of the country and the terms of the employee's contract. In some countries, salaried employees may be exempt from overtime pay, while in others, they may be eligible for overtime pay like hourly employees.

What are the different types of overtime?

There are several types of overtime, including:

• Regular overtime: Worked beyond an employee's regular hours as defined by their contract or agreement.
• Premium overtime: Paid at a higher rate, often double or triple, for work during holidays or short notice.
• Compensatory time: Time off given in lieu of overtime pay, common in the public sector.
• Voluntary overtime: Overtime that employees choose to work, often for additional pay or time off.