Overtime Premium Rate Formula
Overtime premium rate
usually is paid as percentage of basic rate. Premium rate is used to pay the
bonus or overtime to the labour. This relationship can be mathematically
expressed by following formula
Overtime Premium Rate=Basic Rate (1+ % of basic Rate)
Example
Basic
rate= 5
Premium
is 60% of basic Rate
Calculate
amount of overtime for 20 Hours
Solution
Overtime Premium Rate=Basic Rate (1+ % of basic Rate)
5 (1+ 60%)
= 8 $ per hour
(Premium Rate)
Amount
of overtime = Hr x overtime rate
=
20 x 8
=160 (Overtime)
