What Is Time and a Half?

Time and a half is a pay rate that is 1.5 times a worker’s usual rate. It is most commonly used for overtime pay, though it can be used voluntarily as well, for example to provide your staff with an incentive for extra work.

Are you required to pay overtime as time-and-a-half?

In many places around the world, you are required to pay your staff’s overtime using time-and-a-half calculations. However, this only applies to employees who are eligible for overtime payments in the first place, which is often not the case for everyone. Consult with a local labor lawyer to get accurate information about what pay rates apply in your case.

Where else can time-and-a-half be used?

As a business owner, you can use time and a half payments in a variety of ways as an incentive. For example, if your company has a high-priority project, you may offer time-and-a-half payments on it to speed up its progress. However, to take advantage of time-and-a-half in such ways, you need to be paying your team on an hourly basis, not a periodical fixed amount.

Are there any variations of time and a half payments?

Besides time and a half, you could use higher rates to provide your team with an additional benefit. If you’re not required to offer time-and-a-half overtime pay, you could also consider a lower rate instead. Something like time-and-a-quarter can still incentivise your team to work on certain tasks and be used as a workplace benefit.