# Overtime rate: Wikis

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# Encyclopedia

The overtime rate calculates the ratio between employee overtime with the planned working times in a specific time period.

## Interpretation

A high overtime rate is an indicator of a temporary or permanent high workload. It could result in a higher Illness Rate and higher labor costs. It could be a reason to rethink time models or simply result in hiring new employees.

## Calculation Formula

$\textstyle{\mbox{Overtime Rate } = \frac{\sum{\mbox{Time Account Overtime}}}{\sum{\mbox{Planned Working Times}}}}$

• Unit of Measure: %

Time account overtime and planned working times shall be counted in hours to calculate the overtime rate, only paid overtime of permanent and active (employment rate > 0) employees shall be considered.