Enter the current wage, hours worked, overtime rate, and overtime hours into the calculator to determine the excess wage. The excess wage is the additional amount earned due to overtime work.
Excess Wage Formula
The following formula is used to calculate the excess wage.
EW = (CW * OR * OH) - (CW * OH)
Variables:
- EW is the excess wage ($)
- CW is the current wage per hour ($)
- OR is the overtime rate (multiplier)
- OH is the overtime hours (hours)
To calculate the excess wage, multiply the current wage per hour by the overtime rate and the overtime hours, then subtract the product of the current wage per hour and the overtime hours.
What is Excess Wage?
Excess wage is the additional compensation a worker earns for hours worked beyond the standard workweek. It is typically calculated using an overtime rate, which is often 1.5 times the regular hourly wage. This rate compensates employees for the extra time and effort put into their work beyond the normal working hours.
How to Calculate Excess Wage?
The following steps outline how to calculate the Excess Wage.
- First, determine the current wage per hour (CW) in dollars.
- Next, determine the overtime rate (OR), which is typically 1.5 times the regular rate.
- Next, determine the number of overtime hours worked (OH).
- Next, gather the formula from above = EW = (CW * OR * OH) – (CW * OH).
- Finally, calculate the Excess Wage (EW) in dollars.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
current wage per hour (CW) = $15.00
overtime rate (OR) = 1.5
overtime hours (OH) = 10 hours
