Overtime premium

An overtime premium is the additional payment made to an employee for hours worked in excess of 40 hours per week. The amount of the overtime premium is typically 50% of the base pay level. For example, if a person normally earns $10 per hour and works 42 hours in a week, then her base pay will be $420 (calculated as 42 hours multiplied by $10/hour) and her overtime premium will be $10 (calculated as 2 hours multiplied by $5/hour).

Related Courses

Human Resources Guidebook 
Optimal Accounting for Payroll
Payroll Management