If an employee works beyond the normal or stipulated working hours mentioned in his/her contract, The law entitles them to overtime pay. Overtime pay is 1.5 times the regular pay. Moreover, an employer cannot make his/her employee work for more than exceed 12 hours a week. To calculate Overtime Pay, divide the gross salary by 180 (total working hours allowed for a month) and then multiply it with the total number of overtime hours worked by the employee.