See overtime as a share of total hours and total payroll, to track it week to week.
In shortOvertime % of hours = overtime hours ÷ total hours × 100. Overtime % of pay = overtime pay ÷ total pay × 100. 240 overtime hours out of 3,440 is 7.0% of hours and about 10.1% of pay at time and a half.
Who uses itOperations managers, finance and payroll
WhenWeekly checks and monthly labor reviews
You needRegular hours, overtime hours, average wage, multiplier
Overtime % of pay = overtime pay ÷ total pay × 100.
Walking through an overtime percentage example
A month has 3,200 regular and 240 overtime hours at an average of $17. Overtime is 7.0% of hours, costs $6,120, and makes up 10.1% of the $60,520 wage bill.
Who uses this calculator
A single overtime number is easy to miss; a percentage tracked every week shows trends. Pay share is higher than hours share because overtime is paid at a premium.
Set an internal target, review teams above it and look for scheduling causes.
A different scenario
A dock crew logs 1,600 regular hours and 312 overtime hours in a peak-season month at an average of $21 an hour. Overtime is 16.3% of hours worked. At time and a half, overtime pay is $9,828, which is 22.6% of the $43,428 wage bill.
Making sense of the overtime percentage number
The pay share is always higher than the hours share when the multiplier is above 1, because each overtime hour costs more. Both figures assume you entered only non-exempt hours; adding salaried hours lowers the percentages without changing what overtime costs. The wage bill leaves out bonuses and differentials, which raise the regular rate and therefore the real overtime cost.
Where this usually goes wrong
Looking only at the company total. One team running heavy overtime can hide inside a healthy average; break it down by team and shift.
Including exempt salaried staff in the hours. Count only non-exempt employees who earn overtime.
Calling every overtime hour a problem. Some planned overtime is cheaper than an extra hire; compare before cutting.
Make the overtime percentage fit your setup
Distribution centersTrack the percentage by shift and by day to see whether overtime follows truck schedules.
Hospitals and clinicsTrack it by unit, since a single short-staffed unit can drive most of the overtime.
Worth knowingSet a review trigger, such as a level your managers agree on, rather than a ban. A ban often just moves hours into unpaid work, which creates bigger problems.
What people ask about the overtime percentage calculator
What is a normal overtime percentage?
It varies by industry; track your own trend.
Why is the pay share higher?
Overtime is paid at a premium.
Should salaried staff be included?
Only non-exempt hourly employees.
How do I reduce it?
Find the shifts and teams where it happens and fix the schedule.
Should I track the overtime percentage weekly or monthly?
Weekly shows which weeks spike, while monthly smooths them out. Federal overtime is worked out by workweek, so a moderate monthly figure can hide one very heavy week.
Why does the calculator use one average wage?
It keeps the math simple, but if overtime goes mostly to higher-paid staff, the true overtime pay and pay share are higher than shown. Run each pay group on its own for a closer figure.
Set overtime thresholds and weekly hour limits in EZTime and managers get an alert while there is still time to change the schedule. A 14-day trial needs no credit card.
General information and an estimate only. It is not legal, payroll, tax or financial advice. Rules vary by state and city. Check important results with a qualified professional.
