Overtime Pay means the amount compensated for hours or days worked in excess of the maximum limit mentioned in your contract or set by federal or provincial law.
Usually, the formula mentioned below is used to calculate the overtime pay. But it may differ according to geographical locations or organization.
Formula to calculate Overtime
Regular pay X 1.5 X number of extra hours = Overtime Pay
For example, if an employee works 2 hours more than his decided limit, the calculation will be as below:
Rs.200(Regular pay/hour) X 1.5 X 2 hours= Rs. 600 Overtime Pay
If you have any queries or questions, share them in comments below and I will be more than happy to help you