How do you work out overtime if you have a salary??

jos22

Well, having paid salaries for many years (before retiring) always:-
Annual salary divided by 52 (weeks in a year) = weekly pay
Weekly pay divided by hours contracted to work per week = hourly pay.

As to what enhancements are made (time and a half, double time) depends on what your contract of employment states. Some employers expect employees paid a salary to work overtime for no extra pay. After all they usually get time off with pay for dentist, doctors appointments etc, unlike their hourly paid counterparts.

wigginsmum

That's true - I don't get paid overtime, working for an investment bank, but conversely there's no problem with time off for dentist etc, and I do get an annual bonus. Swings and roundabouts - works for everyone as long as it's reasonable on all sides.

littlejaffa

To get your hourly rate from a salary -
Multiply your weekly hours (less unpaid lunch break etc) by 52 and divide your salary by that figure to get your hourly rate,

i.e if your salary was £20,000 @ 40.hrs weekly
40 x 52 = 2080
20,000 / 2080 = £9.62hrly.
time & half - 9.62 x 1.5 = £14.42

This only works if you know your yearly salary, it's easy to get it wrong if your using a weekly or monthly amount.

Depending how much overtime your working you might have to opt out of the working time directive that limits the number of hours you work each week - this is easily done.

BUT...salaried, means your not entitled to overtime, your being paid an amount for the job, whatever it takes.
Some companies do offer time or time & half, (details in contract) but strickly speaking in these cases your being given a yearly wage, not a salary, I appreciate no-one really cares and it's a grammer issue, but there it is!

Petal_3

I didn't think there could be so many different ways! My way is:

Annual salary divided by 261 (365 - 104 [52 w/ends x 2 days]) = salary per working day then divided by contracted daily hours = hourly pay x o/time rate.

~x~