How Is Overtime Calculated in Ontario

In Ontario, overtime pay is calculated based on specific rules set by the province's Employment Standards Act. Understanding these rules is essential for both employers and employees to ensure compliance and fair compensation.

Regular Overtime

Regular overtime is paid at 1.5 times the employee's regular hourly rate for hours worked beyond 44 hours in a workweek. This applies to all employees except those in certain exempt categories.

Regular Overtime Formula

Regular Overtime Pay = (Regular Hourly Rate × 1.5) × Number of Overtime Hours

For example, if an employee earns $20 per hour and works 50 hours in a week:

Regular hours: 44 × $20 = $880
Overtime hours: 6 × ($20 × 1.5) = $180
Total pay: $880 + $180 = $1,060

Premium Overtime

Premium overtime is paid at 1.5 times the regular rate for hours worked on Sundays and holidays, and at double the regular rate for hours worked between 12:00 AM and 6:00 AM on any day.

Premium Overtime Formula

Premium Overtime Pay = (Regular Hourly Rate × Premium Rate) × Number of Premium Overtime Hours

Sunday or holiday: 1.5 × regular rate
12:00 AM to 6:00 AM: 2 × regular rate

For example, if an employee earns $20 per hour and works 4 hours from 1:00 AM to 5:00 AM on a Sunday:

Regular pay: 4 × $20 = $80
Sunday premium: 4 × ($20 × 1.5) = $120
Early morning premium: 4 × ($20 × 2) = $160
Total pay: $80 + $120 + $160 = $360

Exemptions

Certain employees are exempt from overtime pay requirements, including:

Professional employees (e.g., doctors, lawyers, engineers)
Executives and administrative employees
Outside sales employees
Employees in certain agricultural or seasonal work

Note: Exempt employees must still be paid at least the minimum wage for all hours worked.

Calculation Examples

Let's look at two practical examples to illustrate how overtime is calculated in Ontario.

Example 1: Regular Overtime

An employee earns $18 per hour and works 48 hours in a week.

Regular hours: 44 × $18 = $792
Overtime hours: 4 × ($18 × 1.5) = $108
Total pay: $792 + $108 = $900

Example 2: Premium Overtime

An employee earns $22 per hour and works 6 hours on a Sunday from 10:00 AM to 4:00 PM.

Regular pay: 6 × $22 = $132
Sunday premium: 6 × ($22 × 1.5) = $231
Total pay: $132 + $231 = $363

FAQ

What is the minimum wage in Ontario?

The minimum wage in Ontario is currently $15.25 per hour, which includes overtime pay for eligible employees.

Are all employees entitled to overtime pay in Ontario?

No, certain exempt employees are not entitled to overtime pay. These include professionals, executives, and employees in specific agricultural or seasonal work.

How is overtime calculated for part-time employees?

Part-time employees are entitled to overtime pay for any hours worked beyond their scheduled hours in a workweek, calculated at 1.5 times their regular hourly rate.