Separate all worked hours from premium-eligible hours
Enter the total hours once, then enter the subset receiving the differential. For 40 total hours at $20, with 16 hours receiving $2 extra, straight-time earnings are $800 + $32 = $832. Premium hours are part of the 40 hours; adding them again would overstate the total.
Check a mixed-week example
For 44 total hours at $20, 20 premium hours at $2 extra, and 4 overtime hours, straight-time earnings are $920. The modeled weighted rate is $920 ÷ 44. The added overtime premium is half of that rate multiplied by 4, giving approximately $961.82 gross in total. This model is not a substitute for rules covering other compensation or special arrangements.
Frequently asked questions
What is a 10% shift differential at $20 an hour?
Ten percent of $20 is $2 extra per eligible hour. Twelve eligible hours add $24 in straight-time premium earnings. The percentage applies to the entered base rate.
Is shift differential the same as overtime?
No. A differential applies to eligible shift hours, while overtime is a separate calculation. The tool allows the same hour to qualify for both without counting it twice as time worked.
Does this calculate take-home pay?
No. It estimates gross pay before taxes, benefits and other deductions. It also excludes bonuses and other pay components not entered in the model.
Can premium hours exceed total hours?
Not in this single-premium model. Enter only the subset of total hours receiving the premium. Overlapping premiums at different rates require a separate calculation.