Regular Pay
$1,000.00
40 hrs x $25.00/hr
Overtime Pay
$375.00
10 hrs x $37.50/hr (1.5x)
Total Gross
$1,375.00
Estimated Net
$1,028.92
| Weekly | Annual | |
|---|---|---|
| Regular Pay | $1,000.00 | $52,000.00 |
| Overtime Pay | $375.00 | $19,500.00 |
| Total Gross | $1,375.00 | $71,500.00 |
| Est. Tax + Deductions | $346.08 | $17,996.07 |
| Est. Net Pay | $1,028.92 | $53,503.93 |
What are the provincial overtime rules in Canada?
Overtime rules vary by province. Ontario: OT after 44 hrs/week at 1.5x. British Columbia: OT after 8 hrs/day or 40 hrs/week at 1.5x, double-time after 12 hrs/day. Alberta: OT after 8 hrs/day or 44 hrs/week at 1.5x. Quebec: OT after 40 hrs/week at 1.5x. Federal employees: OT after 8 hrs/day or 40 hrs/week at 1.5x. Saskatchewan: OT after 8 hrs/day or 40 hrs/week.
When does overtime kick in?
The overtime threshold depends on your province and whether it is daily or weekly. Most provinces use a weekly threshold (40-44 hours). BC and Alberta also have daily thresholds (8 hours). Some provinces require employer agreement for overtime, while others mandate it. Federally regulated industries (banking, telecom, transport) follow the Canada Labour Code at 8 hrs/day or 40 hrs/week.
Are any employees exempt from overtime?
Yes. Common exemptions include managers and supervisors, certain professionals (engineers, lawyers, accountants), IT professionals in some provinces, farm workers, and commission salespeople. The specific exemptions vary by province. Check your provincial Employment Standards Act for the complete list. Being salaried does not automatically exempt you from overtime -- that is a common misconception.
Can my employer offer time-in-lieu instead of overtime pay?
In most provinces, employers and employees can agree to "banked overtime" or time-in-lieu. The rate is typically 1.5 hours of paid time off for each hour of overtime worked. This must usually be documented in writing. In Ontario, banked time must be taken within 3 months of the pay period in which it was earned. If not taken, it must be paid out at 1.5x.
Is overtime taxed at a higher rate?
Overtime is not taxed at a special rate. It is added to your regular income and taxed at your marginal rate. However, since overtime increases your total income, it may push you into a higher tax bracket, resulting in a higher marginal rate on those additional earnings. The tax shown here is estimated based on annualizing your weekly earnings including overtime.
CRA-Aligned: Tax estimates use 2025 CRA rates. Check your provincial employment standards for specific overtime rules applicable to your situation.
How overtime rules and rates work across Canadian provinces
When does overtime start in Canada?
Overtime thresholds vary by province. In Ontario, overtime begins after 44 hours per week. In British Columbia, it starts after 8 hours per day or 40 hours per week. In Alberta, it is after 8 hours per day or 44 hours per week. For federally regulated industries, overtime starts after 8 hours per day or 40 hours per week. Always check your province's rules.
What is the overtime pay rate?
The standard overtime rate across Canada is 1.5 times your regular hourly rate (time and a half). If your regular rate is $25 per hour, overtime pays $37.50 per hour. British Columbia also requires double time after 12 hours in a day. Some collective agreements may provide more generous overtime rates.
Can your employer offer time off instead of overtime pay?
In most provinces, employers can offer paid time off in lieu of overtime pay if the employee agrees. This is called "banking" overtime or "comp time." The time off must be at the overtime rate — for every hour of overtime worked, you get 1.5 hours of paid time off. The details vary by province, and in some jurisdictions, a written agreement is required.
Who is exempt from overtime?
Certain employees are exempt from overtime rules. Common exemptions include managers and supervisors, IT professionals (in some provinces), licensed professionals like lawyers and accountants, and some sales workers. The specific exemptions vary by province. Being salaried does not automatically exempt you from overtime — it depends on your job duties and classification.
How is overtime taxed?
Overtime is taxed as regular employment income. It is added to your regular pay and taxed at your marginal rate. Because overtime increases your total income, it can push you into a higher tax bracket. Your employer withholds tax based on annualising your total pay for that period, which may result in higher-than-expected deductions on overtime paycheques.
What about overtime for part-time workers?
Part-time workers earn overtime once they exceed the provincial overtime threshold, not when they exceed their normal scheduled hours. If the threshold is 44 hours per week, a part-time worker who normally works 20 hours does not earn overtime until they work more than 44 hours in a week. Hours worked between 20 and 44 are paid at the regular rate.
Can you refuse overtime?
In most provinces, employers can require reasonable amounts of overtime. However, there are limits. Ontario caps excess overtime at 8 hours per week unless the employee agrees in writing to work more. Workers can refuse overtime in emergencies involving personal safety. Some collective agreements also set overtime limits. If you feel overtime requests are unreasonable, contact your provincial labour board.
CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
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