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Regular Rate of Pay

Also called: regular rate, hourly regular rate

Definition: The regular rate is the hourly amount used to compute overtime under the FLSA: total weekly remuneration, with limited exclusions, divided by total hours worked, not simply the base wage.

Updated November 6, 2026 · How we check facts

The regular rate of pay is the base on which time and a half is calculated. The Department of Labor states that it "includes all remuneration for employment except certain payments excluded by the Act itself"; discretionary bonuses are among the exclusions. For an employee on one hourly wage with no extra pay, it equals that wage. Differentials and promised bonuses make it higher.

Formula

regular rate = total remuneration for the week ÷ total hours worked
overtime premium = ½ × regular rate × overtime hours

Total remuneration here includes straight-time pay for all hours, including overtime hours, which is why only half the regular rate is added for each overtime hour.

Example

An employee earns $20 an hour, works 48 hours and receives a $100 attendance bonus. Total remuneration is 48 × $20 + $100 = $1,060, so the regular rate is $1,060 ÷ 48 = $22.08. The premium for 8 overtime hours is 8 × $22.08 ÷ 2 = $88.33, and weekly pay is $1,060 + $88.33 = $1,148.33.

See the full method in how to calculate overtime pay or use the overtime calculator.

Calculate it

Free toolOvertime CalculatorYour pay with overtime, hour by hour.Open →Free toolTime and a Half CalculatorYour hourly rate × 1.5, instantly.Open →

Guides that explain it

How to Calculate Overtime Pay (Formula, Bonuses, Tax)

Related terms

Time and a HalfTime and a half is overtime pay at 1.5 times the regular hourly rate; under the U.S. FLSA it is the minimum rate for non-exempt employees' hours worked over 40 in a workweek.Qualified Overtime Compensation (Tax Deduction)Qualified overtime compensation is the FLSA-required premium on overtime pay that U.S. taxpayers can deduct for tax years 2025 through 2028, up to $12,500 ($25,000 joint), subject to an income phase-out.401(k)A 401(k) is an employer-sponsored retirement savings plan in which employees contribute part of their pay, often with employer matching, up to annual limits set by the IRS.Annual Percentage Rate (APR)Annual percentage rate (APR) is the cost of credit expressed as a yearly rate; for many loans it combines the interest rate with certain fees charged when the loan is made.Annual Percentage Yield (APY)Annual percentage yield (APY) is the total interest a deposit account pays over a 365-day period, expressed as a percentage that includes the effect of compounding.Catch-Up ContributionA catch-up contribution is an extra amount that people age 50 or older may add to a 401(k) or similar retirement plan above the normal annual limit, if the plan permits it.Compound InterestCompound interest is interest calculated on both the original principal and the interest already added to it, so the balance grows faster than it would with simple interest.Debt-to-Income Ratio (DTI)Debt-to-income ratio (DTI) is the share of gross monthly income that goes to monthly debt payments; lenders use it to judge whether a borrower can afford another loan.

Sources