How overtime is calculated in Ontario
Overtime in Ontario is every hour worked over 44 in a work week, paid at one and a half times the employee's regular rate of pay.[on_ot] The rule applies to full-time, part-time, student, casual and temporary agency workers alike. Overtime is counted by the week, not the day: a 12-hour day inside a 40-hour week earns no overtime under the ESA.
| Regular rate | Overtime rate | Overtime pay | Total for the week |
|---|---|---|---|
| $17.95 | $26.92 | $161.52 | $951.32 |
| $20.00 | $30.00 | $180.00 | $1,060.00 |
| $25.00 | $37.50 | $225.00 | $1,325.00 |
| $30.00 | $45.00 | $270.00 | $1,590.00 |
| $40.00 | $60.00 | $360.00 | $2,120.00 |
Overtime for salaried employees
A fixed salary covers the hours up to 44 in a week; hours above 44 are paid as overtime on a regular rate worked out as the salary divided by 44.[on_ot] Ontario's example: Sharon earns $950 a week and works 50 hours. Her regular rate is $950 ÷ 44 = $21.59, her overtime rate $32.39, and 6 hours of overtime adds $194.34 for $1,144.34 in the week. A salary that is adjusted for the hours actually worked is treated differently: in the guide's example, Ben's $750 for a 40-hour week gives a regular rate of $750 ÷ 40 = $18.75, paid for every hour up to 44, with overtime at $28.13 after that.
Banked overtime (time off in lieu)
An employer and employee can agree in writing or electronically that the employee takes paid time off instead of overtime pay: one and a half hours off for each hour of overtime.[on_ot] The calculator shows the banked hours for the week. The time off must be taken within three months of the week the overtime was earned, or within 12 months if the employee agrees in writing or electronically.
Averaging agreements and two rates
Hours can be averaged over two or more weeks only under a written averaging agreement that meets ESA conditions. An employee who does two kinds of work at different rates in the same week is paid overtime at the rate of the work done in each overtime hour: the guide's example of 2 hours at $30.00 and 2 hours at $37.50 gives $135.00.[on_ot]
Overtime, vacation pay and minimum wage
Overtime pay counts toward vacation pay, so 4% or 6% is added on top; the vacation pay calculator for Ontario takes your yearly total. At the minimum wage in Ontario of $17.95, the overtime rate is $26.92 an hour. Regular weekly wages, not overtime, set the amount of notice and severance pay in Ontario.
Common overtime mistakes
- Paying overtime after 40 hours "because it is the standard" and then refusing it between 40 and 44, or the reverse; check the contract and the ESA threshold.
- Assuming salaried staff are never owed overtime. Only specific job categories are exempt.
- Banking overtime hour for hour instead of 1.5 hours per overtime hour.
- Averaging hours across weeks without a written agreement.
Frequently asked questions
When does overtime start in Ontario?
After 44 hours in a work week, for most employees.
How do I calculate time and a half?
Multiply the regular hourly rate by 1.5. $22 × 1.5 = $33 an hour for each overtime hour.
Do salaried employees get overtime in Ontario?
Yes, unless their job is exempt. The regular rate is the weekly salary divided by the hours it covers (44 by default), and hours over 44 are paid at 1.5 times that rate.
Is overtime calculated daily in Ontario?
No. Ontario's ESA counts overtime by the week, after 44 hours, not after 8 hours in a day.