Paid by the hour
Many jobs pay an hourly wage:
Pay = hourly rate × hours worked
Example: $18.50/h for 32 hours → 18.50 × 32 = $592.00
What is overtime?
Overtime is time worked beyond the regular hours. It’s usually paid at a higher rate.
| Rate | Multiplier | At $20/h |
|---|---|---|
| Regular | × 1 | $20.00 |
| Time and a half | × 1.5 | $30.00 |
| Double time | × 2 | $40.00 |
In Ontario, the Employment Standards Act generally requires overtime pay of at least time and a half after 44 hours in a work week. Other provinces set different thresholds (some use 40 hours, and some also use daily limits). Some jobs are exempt, and collective agreements may offer more.
Calculating overtime pay
Example: Ontario, $20/h, 50 hours in a week.
- Regular: 44 h × $20 = $880
- Overtime: 6 h × $30 = $180
- Gross pay: $1,060
Example: A province where overtime starts after 40 h/week. $16.50/h, 46 hours.
- Regular: 40 × 16.50 = $660
- Overtime rate: 16.50 × 1.5 = $24.75
- Overtime: 6 × 24.75 = $148.50
- Total: $808.50
Hours and minutes
Convert minutes to hours by dividing by 60.
- 7 h 45 min = 7.75 h
- 8 h 20 min ≈ 8.33 h
Timesheet example:
| Day | Hours |
|---|---|
| Mon | 8.5 |
| Tue | 9 |
| Wed | 8 |
| Thu | 10 |
| Fri | 9.5 |
| Total | 45 |
Working backwards
Example: Ana earned $702 for 36 hours. Hourly rate? 702 ÷ 36 = $19.50.
Example: At $22/h with time and a half after 40 h, how many hours to earn $1,045?
- 40 h = $880; remaining $165 at $33/h = 5 h → 45 hours
Other pay extras
- Shift premiums for nights or weekends
- Statutory holiday pay (often time and a half for working on a holiday)
- Tips, which may be paid separately
Worked examples
Example 1: $15.75/h × 24 h = $378.
Example 2: Time and a half for $21.40/h? $32.10/h.
Example 3: $24/h, 44 regular + 4 overtime hours at 1.5×? 1,056 + 144 = $1,200.
Common mistakes
- Paying overtime on all hours instead of only the extra ones.
- Writing 7 h 30 min as 7.3 h (it’s 7.5 h).
- Forgetting that rules vary by province.
Try it yourself
- $17.60/h for 28 hours?
- Double time for $19/h?
- $20/h, overtime at 1.5× after 44 h. Pay for 48 h?
- Convert 6 h 15 min to decimal hours.
Answers: 1) $492.80 2) $38/h 3) $1,000 4) 6.25 h
Quick recap
- Pay = hourly wage × hours.
- Overtime is usually time and a half after a set number of regular hours.
- Convert minutes to decimal hours carefully.