# How to Calculate Overtime for Employees

When you have your employees, full time or part-time, work overtime, you have to pay them 1.5 to 3 times their normal wage. Here is how to calculate overtime for employees.

You will take their hourly rate and multiply it by 1.5 for the time outside of the normal work hours on the work days and the time inside the normal work hours on their weekly holidays. You will pay them 3 times the hourly rate if they work outside the normal work hours on their weekly holidays.

For example, if your normal work hours is from 8 AM to 5 PM with one hour lunch break and the weekly holidays are Saturday and Sunday, the overtime hours is any time outside of your normal work hours. In this example, you will calculate your employee’s overtime pay as follows:

1. The hours outside of 8 AM to 5 PM on Monday to Friday – The overtime payment is 1.5 times the hourly rate.
2. 8 AM to 5 PM on Saturday and Sunday – The overtime payment is 1.5 times the hourly rate.
3. Outside of 8 AM to 5 PM on Saturday and Sunday – The overtime payment is 3 times the hourly rate.

An hourly rate is the daily rate divided by 8 hours.

For the employees that you pay a monthly salary, the daily rate is their salary divided by 30 days. (Even in the months that have 28, 29 or 31 days, you will use 30).

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