How to calculate overtime pay

Overtime is work beyond your agreed weekly hours, such as hours above 40 if that is your usual limit. The rules governing it differ between countries and between employment contracts, and may include maximum-hour limits and different arrangements depending on the type of work.

The general principle is that extra hours are paid at a higher rate than regular hours, through a multiplier such as 1.25, 1.5 or 2, but the applicable figure must be checked in your contract and with the official authorities in your country.

To calculate the pay you need: the basis a monthly salary or an hourly rate, your normal weekly working hours, the number of overtime hours, and the multiplier applied or a custom value.

If your basis is a monthly salary, you also need your weekly hours to convert the salary into a base hourly rate. Enter values that match your actual contract; multipliers and rules vary between countries and contracts.

If you know your hourly rate directly, use it as the basis. If you are paid a monthly salary, convert it to an hourly rate: base hourly rate = (monthly salary × 12) ÷ (52 × weekly working hours).

Using the calculator’s example: a monthly salary of 1,000 dinars and 40 weekly hours. The base hourly rate = (1,000 × 12) ÷ (52 × 40) ≈ 5.77 dinars. This is the rate everything else is built on.

The overtime hourly rate = base hourly rate × multiplier. The weekly overtime pay = overtime hourly rate × overtime hours.

Continuing the example: at a multiplier of 1.5, the overtime hourly rate ≈ 5.77 × 1.5 ≈ 8.65 dinars. For 6 overtime hours per week, overtime pay ≈ 8.65 × 6 ≈ 51.92 dinars. Your total weekly earnings = (5.77 × 40) + 51.92 ≈ 282.69 dinars.

The multiplier is not a fixed number; it may be 1.25, 1.5 or 2 depending on the applicable rules, and it can differ for public holidays, weekends or night hours. The calculator lets you pick a preset multiplier or enter a custom value.

Do not assume a multiplier: check your employment contract, your employer’s policy and the official rules in your country. Getting the multiplier right is the most important step, because an error here multiplies the difference in the amount you are owed.

Overtime and leave balance are usually separate topics: one covers extra working hours and their pay, the other covers the leave days you have accrued. But they connect in policies that grant time off instead of overtime pay, sometimes called time off in lieu.

A leave balance is normally built from your annual entitlement applied to your service length, minus what you have used. Using the leave balance calculator’s example: an annual entitlement of 30 days with monthly accrual, after 12 months of service the accrued leave is 30 days; if you used 10, the available balance is 20 days. Always check the policy that applies to you.

These calculations are estimates based on inputs you provide. Overtime and leave rules, maximum limits and the way the base rate is computed vary between countries and may create obligations for the employer.

If you are unsure about your rights or obligations, check your contract and your employer’s policies, review the official labour authorities in your country, and consult a lawyer or a specialist when needed.