Overtime & Incentive Calculator
Estimate overtime earnings using hourly rate, overtime multiplier, shift differential, and flat incentives.
| Item | Value |
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Related guides
Why a bonus changes your overtime pay
Overtime is 1.5× your regular rate, not 1.5× your hourly wage. The regular rate is total straight-time earnings for the week divided by hours worked — and under the US FLSA that total includes nondiscretionary bonuses, shift differentials and commission.
| Payment | In the regular rate? |
|---|---|
| Nondiscretionary bonus (production, attendance, quality) | Yes |
| Shift differential for nights or weekends | Yes |
| Commission | Yes |
| Genuinely discretionary bonus | No |
| Holiday or vacation pay | No |
| Expense reimbursement | No |
Last reviewed 20 August 2026
Worked example
46 hours worked, $20.00 base rate, 12 night-shift hours at a $3.00 differential, plus a $100 nondiscretionary weekly production bonus.
Calculating the premium on the $20 base alone pays $60.00 instead of $68.88 — roughly $460 a year, and the single most common wage-and-hour claim. Educational example only, not legal advice.
Full detail in overtime pay basics.
Overtime and bonus questions
Do bonuses count towards overtime pay?
Nondiscretionary bonuses do. A bonus promised in advance for production, attendance, quality or hitting a target must be included in the regular rate used to calculate overtime under the FLSA. Genuinely discretionary bonuses do not.
How is overtime calculated with a bonus?
Add the bonus to straight-time earnings for the week, divide by hours worked to get the regular rate, then pay an additional half of that rate for each hour over 40.
What if the bonus covers more than one week?
It has to be allocated back across the weeks it was earned over, with the overtime premium recalculated for any week containing overtime hours. A $1,300 quarterly bonus over 13 weeks allocates $100 per week. This retroactive adjustment is frequently missed.
Does a shift differential increase overtime pay?
Yes. Shift differentials are part of straight-time earnings, so they raise the regular rate and therefore the overtime premium.
Reviewed 20 August 2026 by the BonusPayCalc editorial team. Gross planning estimates only — not payroll, tax, legal or HR advice. See methodology for how formulas are chosen, or report a correction.