Recall, your gut answer first
Three printable worksheets that build from foundations to mastery, or build your own from any module’s questions.
Practise this lesson
Three printable worksheets that build from foundations to mastery, or build your own from any module’s questions.
Why do you think workers get paid more for working on a Sunday or a public holiday than on a regular Tuesday? If a café charges the same price for a coffee on Anzac Day as on a Monday, but the staff cost twice as much to employ that day, what does that mean for the business? Think about what "time-and-a-half" actually means before we define it mathematically.
Before calculating write your gut feeling. We will revisit this at the end of the lesson.
Overtime is always calculated by multiplying the base rate by the penalty multiplier, then multiplying by the hours at that rate. Normal and overtime pay are always calculated separately and then added.
$r_{\text{OT}} = r_h \times m$ where $m$ is the multiplier. Gross pay = (normal hours × base rate) + (OT hours × OT rate) + allowances. Each component is listed and calculated independently before summing.
Key facts
- The multipliers: time-and-a-half (1.5×), double time (2.0×), double time and a half (2.5×)
- That allowances are added on top of base pay, not subject to overtime multipliers
- Gross pay = base pay + overtime + allowances
Concepts
- Why normal and overtime hours must be calculated separately before adding
- Why time-and-a-half means the full rate is 1.5×, not just an extra 0.5×
- Why allowance amounts do not change on overtime days
Skills
- Calculate overtime pay at any given multiplier
- Find total weekly pay from mixed normal and overtime hours
- Include allowances correctly in a gross pay calculation