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Overtime and Extra Income

Lesson

People who earn wages are paid a set rate per hour to work a certain number of hours per week. If they work more than this set number of hours, they are entitled to receive overtime, which means that their rate of pay increases. This is done as an incentive to get people to work outside "normal" hours, such as on weekends or public holidays, or for working longer hours in one day than normal.

Common overtime rates

 

Time-and-a-half: payment to a worker at $1.5$1.5 times their usual hourly rate. 

Double time: payment to a worker at $2$2 times their usual hourly rate. 

 

 

 

Example

Neil is a web designer who runs his own small business. He charges an hourly rate of $145.

A) On call outs between 5pm and 11pm, Neil charges a time and a half rate. What is his hourly rate for callouts between 5pm and 11pm?

B) How much would Neil charge for a callout between 6pm and 11pm?

C) On weekends and public holidays Neil charges a double time rate. What is his hourly rate for callouts on weekends and public holidays?

D) How much would Neil charge for a callout between 10am and 5pm on a Sunday?

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