Finesentence mobile logo
Sign in Login / Register

Overtime pay Meaning: Definition, Examples, and Translations

💰
Add to dictionary

overtime pay

[ˈəʊvətaɪm peɪ ]

Definition

Context #1 | Noun

salary

Overtime pay is the additional money paid to an employee for working more hours than the standard workweek. It is typically calculated at a rate of one and a half times the regular hourly wage.

Synonyms

bonus pay, extra pay, premium pay.

Which Synonym Should You Choose?

arrow down
Word Description / Examples
overtime pay

This term is used when employees work beyond their regular working hours and receive additional payment for those extra hours. It usually applies to hourly workers who are compensated based on the time they work beyond their standard schedule.

  • Jane received overtime pay for working late during the busy season.
  • Employees are entitled to overtime pay if they work more than 40 hours in a week.
extra pay

This broad term refers to any additional compensation outside the normal salary or wages. It can encompass overtime pay, bonus pay, and other forms of additional compensation.

  • Employees receive extra pay for working during public holidays.
  • The management announced extra pay for those handling the special project.
premium pay

This phrase is typically used to describe higher rates of pay given for working under special circumstances, such as night shifts, weekends, or hazardous conditions. It is a form of compensation above the normal hourly wage due to the challenging nature of the working conditions.

  • Night shift workers are entitled to premium pay.
  • Staff working on holidays receive premium pay due to the inconvenience.
bonus pay

This is a one-time reward typically given to employees as a form of incentive or recognition for their performance or the company's overall success. It is not tied to hours worked but rather to achievements or milestones.

  • The company awarded bonus pay to employees who exceeded their sales targets.
  • At the end of the fiscal year, each team member received bonus pay for their hard work.

Examples of usage

  • The company offers double overtime pay for working on public holidays.
  • Employees are entitled to overtime pay for any hours worked beyond 40 in a week.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Historical Origins

  • The concept of overtime pay started in the early 20th century as workers fought for better wages and fair working conditions.
  • In the United States, the Fair Labor Standards Act was enacted in 1938, setting the first standards for overtime pay.

Labor Rights

  • Overtime pay is designed to discourage employers from overworking their employees and to ensure fair compensation.
  • Workers often have a right to time-and-a-half pay for hours exceeding a 40-hour workweek, depending on local laws.

Economic Impact

  • When more workers are compensated with overtime, it can boost overall consumer spending in the economy.
  • Companies may adjust schedules and workforce size based on overtime policies, influencing hiring practices.

Cultural Views

  • In many cultures, working overtime can reflect dedication and ambition; however, it may also lead to conversations about work-life balance.
  • Some societies emphasize a standard workweek without overtime, prioritizing leisure and family time over additional earnings.

Modern Trends

  • With remote work rising, many employees find themselves working overtime without clear boundaries between work and home life.
  • Some companies are reevaluating their overtime policies, focusing on employee well-being to prevent burnout.

Origin of 'overtime pay'

The concept of overtime pay dates back to the early 20th century when labor laws were introduced to regulate work hours and compensation. The Fair Labor Standards Act of 1938 in the United States established the standard 40-hour workweek and mandated overtime pay for hours worked beyond that. Overtime pay is a crucial aspect of labor rights and fair compensation for employees.