What Is a Weighted Salary Average?

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A simple calculation can simplify weighted salary averages.
A simple calculation can simplify weighted salary averages. (Image: Ingram Publishing/Ingram Publishing/Getty Images)

According to the Fair Labor Standards Act, a weighted salary average is one option for computing the regular pay rate for an employee who works more than 40 hours in a single workweek in two or more different roles that have different salaries. Although by definition a weighted salary average considers both the time an employee works at each job and the corresponding pay rates, understanding the term is often easier by performing a sample calculation.

Calculation Definition

To get a weighted average for a regular pay rate, add the earnings from each job together and then divide the amount by the total number of hours -- including any overtime -- worked for all jobs. To determine how much to add for overtime, multiply the straight time rate by 0.5 to get half-time pay for the weighted regular rate and then multiply this amount by the total overtime hours.

Sample Calculation

If an employee works 45 hours at $10 per hour in a clerical position and another eight hours at $12 per hour as a call center agent, you’ll pay the employee for 53 total hours. Add the earnings from the clerical work -- $450 -- and the earnings from the call center -- $96 -- to get total straight time pay of $546. Then divide $546 by the total hours worked -- 53 -- to calculate a weighted average regular rate of $10.30 per hour. Multiply $10.30 by 0.5 to get the overtime pay rate of $5.25 and then multiply this amount by 13 overtime hours. Add the straight pay -- $546 -- and overtime pay-- $68.25 -- to get $614.25, the total pay including overtime.

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