Contents

- 1 What does Premium time mean in construction?
- 2 What is the difference between overtime and premium time?
- 3 How is premium time calculated?
- 4 What is the definition of premium pay?
- 5 What is straight-time rate?
- 6 What is double premium pay?
- 7 How do I calculate overtime pay?
- 8 Is holiday premium pay double time?
- 9 Is overtime premium and indirect cost?
- 10 How do you calculate double time?
- 11 How do I calculate my daily rate?
- 12 How much is the basic hourly rate?
- 13 What are insurance premiums?
- 14 Does premium pay count towards overtime?
- 15 Is a shift premium per hour?

## What does Premium time mean in construction?

**Premium** pay refers to the higher wages given to employees who work less desirable hours. This includes holidays, weekends, vacation days or anything over eight hours a day. According to rules set forth by the Fair Labor Standards Act, **premium** pay needs to be ordered in advance.

This is by design. Your workers are paid for all hours worked at their standard rates under Regular Earnings. But any hours that are considered **Overtime** Earnings get an **Overtime Premium**–this makes up the. 5 of the 1.5 rate of pay.

Straight **time** is **calculated** by multiplying the hourly base rate by the total number of hours worked. Shift **premium** pay is **calculated** by multiplying the shift **premium** rate by the number of hours worked on that shift.

**Premium pay** is a higher rate of **pay paid** to those working weekends, holidays, vacation days, or working during hours deemed less desirable. As a general rule, work involving **premium pay** should be authorized or ordered in advance.

## What is straight-time rate?

**Straight**–**time** pay is used to calculate the pay for an employee that works under, or equal to, 40 hours in a week. If your employees work for an hourly wage, you must use overtime pay to calculate their earnings for each hour they work over 40 in a single week.

Holiday **Premium Pay** – sometimes called “**double** time.” An employee who works a holiday is entitled to **pay** at their rate of basic **pay** plus **premium pay** at a rate equal to their rate of basic **pay** for non-overtime hours worked up to 8 except that an employee on a compressed (not flexible) schedule may be **paid** holiday **pay**

## How do I calculate overtime pay?

Overtime Calculator

Overtime (OT) Calculator – Results | ||
---|---|---|

Payment Type | Pay Rate | Hours |

Regular | $15.00 | 40.0 |

Overtime | $22.50 |
5.0 |

Total | $15.83 |
45.0 |

**Holiday premium pay**, commonly called “**double time**“, is **pay** for non-overtime hours of work that you are required to work on a **holiday**. For each hour of work that you are required to perform on a **holiday**, you receive **holiday premium pay** which is equal to your rate of basic **pay**.

**Overtime premiums** are treated as direct labour **costs**, if at the specific request of a customer because they want a job to be finished as soon as possible. Shift **premiums** are similar to **overtime premiums** where the extra amount paid above the basic **rate** is treated as an **indirect** labour **cost**.

## How do you calculate double time?

**How to Calculate Double Time** Pay in **California**

- Total single-shift hours less than or equal to 12 hours – (minus) 8 =
**Time**paid at overtime rate. - Total single-shift hours more than 12 hours – (minus) 12 =
**Time**paid at**double**–**time**rate.

## How do I calculate my daily rate?

Here’s **how to compute the** employee’s **daily rate**. **Daily Rate** = (Monthly **Rate** X 12) / Total working days in **a** year.

## How much is the basic hourly rate?

It is independently set, based on the **cost** of living. There are two **rates** to recognise the higher **costs** of living in **London**. The **London** Living **Wage rate** is £10.85 per **hour** and the **rate** for the rest of the UK is £9.50 per **hour** (from 09/11/2020).

The amount you pay for your health **insurance** every month. In addition to your **premium**, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance.

An employer who requires or permits an employee to work **overtime** is generally required to **pay** the employee **premium pay** for such **overtime** work.

Under the Fair Labor Standards Act, a **shift pay premium** is part of an hourly employee’s regular rate and must be included when overtime **pay** is calculated.