Time and a half is a term used in relation to the payment of employees by a business.
An employee has a normal hourly pay rate, if for a particular period of time the employee is on time and a half pay, then for the hours worked during that period, the normal rate is multiplied by one and a half.
Time and a half pay is normally paid for working above and beyond normal hours, for example, overtime, bank holiday, weekends etc.
How to Calculate Time and a Half for Overtime
If for example, an employee has a normal hourly rate of 10.00, and worked for 40 hours of which 5 hours were time and a half overtime, then the calculation would be as follows.
Normal rate of pay 10.00 per hour Time and half rate of pay = 1.5 x 10.00 = 15.00 per hour Time and half overtime pay = Overtime hours x 15.00 per hour Time and half overtime pay = 5 x 15.00 = 75.00
This overtime pay would then be added to the normal pay of 35 x 10.00 = 350.00, to give total pay of 425.00.
For further information see the Wikipedia time and a half definition.
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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.