Work
Total pay and effective rate
Add the two bands, then divide by all hours worked. The effective rate rises above the base rate whenever overtime is present.
The Formula
Total = Preg + Pot, effective rate = Total / H
Add the two bands, then divide by all hours worked. The effective rate rises above the base rate whenever overtime is present.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P | Total pay for the period | currency | The standard band plus the overtime band. |
| Reff | Effective hourly rate | currency per hour | Total pay divided by hours worked. Higher than the base rate when overtime is paid. |
What Each Symbol Means
Pcurrency
Total pay for the period
The standard band plus the overtime band.
Reffcurrency per hour
Effective hourly rate
Total pay divided by hours worked. Higher than the base rate when overtime is paid.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate overtime pay page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Overtime Pay, filed under Everyday Life. Every number the guide produces comes from substituting into this one line.