Understanding Premium/Overtime Pay for hourly workers in the BVI Labour Code

There are three principle reasons for premium/overtime pay:

  1. The employee has worked more than 40 hours per week
  2. The employee has worked more than 8 hours per day.
  3. The employee is required to work on a day that is his/her rest day.

Premium/Overtime pay is paid at the rate of a least 1.5x their basic rate of pay.

Scenario A

Johnny Smith works for $10 per hour and is paid weekly.  He works 44 hours this pay period.  His gross salary will be (40 hours x $10) + (4 hours * $15) = $460

Scenario B

Jane Smith works for $10 per hour and is paid weekly. This week, however, she only worked one day for 11 hours.  Janes pay at the end of the week is (8 hours x $10) + (3 Hours * $15) = $125. She is paid overtime because she worked more than 8 hours one day.

Scenario C

John Smith is paid $10 per hour and usually has Fridays and Saturdays off. He worked 30 hours between Sunday and Wednesday. Someone called in sick and his employer asked him to work Friday for 5 hours. His pay will be (30 hours x $10) + (5 hours x $15) = $375

Section 49 of the BVI Labour Code deals with Premium/Overtime Pay.

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