Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time.

Pay for any hours worked as overtime are paid at a higher rate than regular hours.

When employees work overtime, employers get the benefit of increased levels of productivity. More work gets done over longer hours, which means products and services are being delivered at a great rate.

**Formula to calculate overtime.**

**Example:**

An employee’s normal working hours per week are 40. In a certain week, the employee worked for 50 hours. Calculate the overtime.

Therefore, her overtime was 10 hours.