How to Calculate Overtime Pay Using Your Paystub
If you’re an hourly employee and have worked more than 40 hours in a week, you may be entitled to overtime pay. Fortunately, your paystub provides all the information you need to calculate it yourself. Here’s how to do it step-by-step.
1) Locate Regular and Overtime Hours
Start by identifying two things on your paystub:
- Regular hours worked – typically listed as “Regular Hours” or “Base Hours.”
- Overtime hours worked – often labeled “OT Hours,” “Overtime,” or something similar.
If overtime hours are missing or incorrect, reach out to your employer immediately.
2) Find Your Regular Pay Rate
Next, look for your hourly rate of pay—this is usually shown alongside your regular hours. For example:
- Regular Pay Rate: $20.00/hour
3) Identify the Overtime Rate
Overtime pay is typically 1.5 times your regular rate (also called “time and a half”), unless your state or employment agreement specifies otherwise.
Example: If your regular rate is $20.00/hour, your overtime rate would be:
$20.00 × 1.5 = $30.00/hour
Some paystubs display this in two ways:
- Single Line: One amount showing OT hours × 1.5x rate.
- Split Lines: One line for OT hours at regular rate (1.0x), and a second line showing the overtime premium (0.5x).
Example: 5 hours at $20 = $100 (regular rate) + $50 (premium) = $150 total overtime.
4) Calculate Your Total Overtime Pay
Now do the math:
- Overtime Pay = Overtime Hours × Overtime Rate
Example: 6 OT hours × $30/hour = $180 in overtime pay
5) Verify in Gross Pay Section
Your gross pay includes both regular and overtime earnings (before taxes or deductions). Cross-check this total to make sure it reflects the calculated overtime amount.
Quick Tips:
- Double-check your paystub every period for accurate hours and rates.
- Discrepancies? Contact your payroll department right away.
- Not seeing OT listed? Your employer may be violating labor laws—most jurisdictions require clear breakdowns on pay stubs.
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