Calculating Total Pay
General Explanation
Many workers earn a fixed amount of money for each hour they work. The amount they earn for each hour is called the hourly rate.
Straight-time pay is the amount an hourly worker earns at the hourly rate. The formula for calculating straight-time pay is: Straight-time Pay = Hourly Rate x Hours WorkedMost hourly workers are expected to work a certain number of hours per week. Usually this is between 35 and 40 hours. This is called "regular hours". When a worker works more than their regular hours they may be paid overtime pay for these additional hours. Often, the overtime rate is 1-1/2 times the regular hourly rate. Overtime pay may be calculated using this formula: Overtime Pay = Overtime Rate x Overtime Hours WorkedWhen a worker earns both straight-time pay and overtime pay, their total pay is found using this formula: Total Pay = Straight-time Pay + Overtime Pay Sample Problem
Todd is paid $6.50 an hour for a regular 40 hour week. His overtime rate is 1-1/2 times his regular hourly rate. Last week
he worked a total of 43 hours. What was his total pay?
Solution
First let's calculate Todd's straight-time pay. Todd worked 40 hours at the regular hourly rate.
Straight-time Pay = $6.50 x 40 hours = $260.00Todd also worked 3 hours of overtime. His overtime rate is 1.5 * $6.50 or $9.75. Now let's calculate Todd's overtime pay. Overtime Pay = $9.75 x 3 hours = $29.25To find Todd's total pay we add his straight-time pay and overtime pay. Total Pay = $260.00 + $29.25 = $289.25 |