When does overtime start in Canada?

Overtime rules vary by province. In Ontario, overtime begins after 44 hours per week. In British Columbia, overtime starts after 8 hours per day or 40 hours per week. In Alberta, overtime kicks in after 8 hours per day or 44 hours per week. Federally regulated employees earn overtime after 40 hours per week.

What is the overtime rate in Canada?

In most Canadian provinces, overtime is paid at 1.5 times (time and a half) your regular hourly rate. In some provinces, double time (2×) applies after a higher threshold — for example, in BC, double time applies after 12 hours per day. Always check your provinces specific employment standards.

How is overtime calculated?

Overtime pay = (overtime hours) × (regular hourly rate × overtime multiplier). For example, if you earn $25/hour, work 50 hours in a week, and overtime starts at 44 hours, your overtime pay is 6 hours × $37.50 (1.5 × $25) = $225 on top of your regular 44 hours of pay.

Can my employer refuse to pay overtime in Canada?

No. If you work beyond the overtime threshold defined by your provinces employment standards legislation, your employer is legally required to pay overtime. Some exceptions exist for managers, certain professionals, and specific industries. If your employer refuses, you can file a complaint with your provincial employment standards office.

Is overtime taxed differently in Canada?

Overtime income is not taxed at a special rate. However, because overtime increases your total income for the pay period, your employer may withhold tax at a higher rate to account for the apparent increase in annualized income. You may get some of this back as a refund at tax time if your actual annual income is lower than the calculated amount.

Who is exempt from overtime in Canada?

Exemptions vary by province but commonly include managers and supervisors, licensed professionals (doctors, lawyers, accountants), certain agricultural workers, and some IT professionals. In Ontario, the Employment Standards Act lists specific exemptions. Always verify your status under your provinces rules.

Can I get time off instead of overtime pay?

In several provinces, you and your employer can agree to paid time off instead of overtime pay (called "banking" overtime). The time off must be at least equal to the overtime rate — for example, if you worked 6 hours of overtime at time-and-a-half, you would receive 9 hours of paid time off instead. This agreement must typically be in writing.

How does overtime work for salaried employees?

Salaried employees are generally still entitled to overtime in Canada unless they fall into a specific exemption category. To calculate the overtime rate for a salaried employee, divide the annual salary by 52 weeks and then by the standard weekly hours to get the hourly equivalent, then multiply by the overtime rate.

Overtime Calculator

An overtime calculator helps you estimate your overtime earnings based on your hourly wage, total hours worked, and your province’s overtime rules. Whether you are picking up extra shifts or tracking your weekly pay, this tool shows your regular pay, overtime pay, total weekly earnings, and effective hourly rate.

How this overtime calculator works

Enter your regular hourly wage, standard weekly hours, total hours worked, and overtime multiplier. Select your province to see the standard overtime threshold, or set custom hours. The calculator shows your regular pay, overtime pay, total weekly pay, and effective hourly rate.

Total Weekly Pay

Regular Hours

Regular Pay

Overtime Hours

OT Hourly Rate

Overtime Pay

Total Weekly Pay

Effective Hourly Rate

Overtime rules by province

Province	OT Threshold	OT Rate	Double Time
Ontario	44 hrs/week	1.5×	—
British Columbia	8 hrs/day, 40 hrs/week	1.5×	2× after 12 hrs/day
Alberta	8 hrs/day, 44 hrs/week	1.5×	—
Quebec	40 hrs/week	1.5×	—
Manitoba	40 hrs/week	1.5×	—
Saskatchewan	8 hrs/day, 40 hrs/week	1.5×	—
Nova Scotia	48 hrs/week	1.5×	—
New Brunswick	44 hrs/week	1.5×	—
Newfoundland	40 hrs/week	1.5×	—
PEI	48 hrs/week	1.5×	—
Federal	40 hrs/week	1.5×	—

How overtime pay is calculated step by step

Example: Maria earns $28/hour in Ontario, works 52 hours this week.

Regular hours: 44 hours (Ontario threshold)
Overtime hours: 52 - 44 = 8 hours
Regular pay: 44 × $28 = $1,232
OT rate: $28 × 1.5 = $42/hour
OT pay: 8 × $42 = $336
Total gross pay: $1,232 + $336 = $1,568
Effective hourly rate: $1,568 ÷ 52 = $30.15/hour

Overtime and taxes

While overtime is not taxed at a higher rate than regular income, your employer’s payroll system may withhold more tax from overtime-heavy paycheques. This happens because the system projects your pay period earnings across the full year and withholds accordingly.

What this means for you:

Your overtime paycheque may appear to be taxed heavily
At tax time, if your total annual income is lower than the projected amount, you may receive a refund
Use our withholding tax calculator to estimate what a paycheque looks like with and without overtime

Overtime strategies for employees

Track your hours carefully — Keep a personal log separate from your employer’s timekeeping system
Know your province’s rules — Check whether overtime is calculated daily, weekly, or both
Get overtime agreements in writing — If banking overtime as time off, document the arrangement
Understand your exemption status — Not all employees are entitled to overtime pay
Factor overtime into financial planning — Do not count on overtime as guaranteed income for budgeting purposes

Converting overtime into annual impact

Weekly OT Hours	OT Rate	Extra Weekly	Extra Monthly	Extra Annually
2 hours	$37.50	$75	$325	$3,900
5 hours	$37.50	$188	$813	$9,750
10 hours	$37.50	$375	$1,625	$19,500

Based on $25/hour base wage at 1.5× overtime.

Regular overtime can significantly boost your income. Consider using extra earnings to accelerate debt payoff, boost TFSA contributions, or build your emergency fund.

Salary Calculator — Convert hourly wages to annual salary with tax deductions
Hourly to Salary Calculator — Convert between hourly and annual rates
Raise Calculator — See how a raise affects your take-home pay
Income Tax Calculator — Calculate federal and provincial tax on your total earnings
Withholding Tax Calculator — Estimate tax withheld from your paycheque
Budget Calculator — Plan how to allocate overtime earnings