I want to pay employees based on a percentage of each job they finish.

Question

I want to pay my employees a set amount, based on a percentage of the job. I need an equation for it that accounts for overtime. For example, Bob worked 45 hours and I want to pay him $3,000. How do I figure his regular hourly wage?

Answer 1

I hope I'm not misunderstanding your question, but if Bob worked $45$ hours in one week and you want to pay him $\$3,000$ for that week's worth of work, you could do the following: $$\frac{\$3,000}{45\text{ hours}}\times\frac{1/45}{1/45}=\frac{\$66.67}{1\text{ hour}}=\$66.67\text{ per hour}$$

For the other example you mentioned in a comment, we can use the same formula of ${\text{total pay}\over\text{hours worked}}:$ $$\frac{\$2,500}{48\text{ hours}}\times\frac{1/48}{1/48}=\frac{\$52.08}{1\text{ hour}}=\$52.08\text{ per hour}$$