Overtime pay: meaning, definitions and examples

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.

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.

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.

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.