Overtime premium: the extra paid for overtime hours
Overtime pay has two parts: the basic rate and a premium on top. Work out both and see where each goes in the costs.
Task 1The overtime rate and the premium3 questions
Fernhill Furniture's basic week is 38 hours. Hours above that are overtime, paid at time and a half: one and a half times the basic rate.
- Overtime rate
- what one overtime hour is paid: the basic rate plus the premium
- Overtime premium
- only the extra part, on top of the basic rate
Dev's basic rate is £15 an hour. In week 3 he works 44 hours.
Task 2Gross pay with overtime3 questions
Task 3Where the premium goes in the costs4 questions