How to Calculate Overtime Pay in Manitoba

Payroll Management

In some provinces, calculating overtime is such a complicated process that employers try to avoid it altogether. Luckily, Manitoba is not one of those provinces. For other complex provinces, check out our guide on Canadian overtime.

Unlike other parts of the country, overtime pay in Manitoba is fairly straightforward. Though there are some exceptions when it comes to who receives overtime pay, it’s relatively simple to calculate overtime pay for most employees in this prairie province.

To show you just how simple overtime pay in Manitoba really is, we’ve created a handy overview, complete with examples that show you how to calculate daily and weekly overtime for your employees.

Manitoba Overtime Pay Rate

Like many other provinces, Manitoba’s overtime pay rate is 1½ times an employee’s regular pay rate for each hour worked during overtime.

In Manitoba, the overtime threshold is fairly straightforward because the standard work hours are eight hours a day and 40 hours a week (whichever is greater). This means that if an employee qualifies for overtime pay if they work more than eight hours in a day or more than 40 hours in a week.

It’s important to note that employees cannot work overtime without the knowledge or permission of their employers.

Special Rules and Exceptions

In Manitoba, most employees qualify for overtime pay, including students, minimum wage earners, salaried employees, and part-time employees. Employees paid by an incentive plan, such as commission, are also entitled to overtime pay.

But there are some professions and industries exempt from the same overtime rules. For instance, those who primarily perform management functions (ie. managers and supervisors) are not entitled to overtime pay. This is also true for employees who have substantial control over their hours of work and earn at least twice the Manitoba Industrial Average Wage. Additionally, elected officials, enumerators, and any other temporary person appointed under The Elections Act are not entitled to overtime.

Additionally, some industries have a different overtime threshold. For instance, the standard wages for the construction industry are as follows:

  • For Residential Construction, the standard hours are still eight hours and day and 40 hours per week
  • For Industrial, Commercial, and Institutional (ICI) Construction, the standard hours are 10 hours per day and 40 days per week
  • For Heavy Construction, the standard hours are:
    • 50 hours per week outside of Winnipeg
    • 50 hours per week in Winnipeg from April 1 to October 31
    • 48 hours per week in Winnipeg from November 1 to March 31 the following year

The landscaping business also has a different overtime threshold. For employees in the landscaping business, the standard hours are 10 hours a day, 50 hours a week, and 2,080 hours a year from April 15 to November 30.

Calculating Overtime Pay Manitoba

As mentioned above, Manitoba’s overtime threshold is fairly straightforward, which makes it fairly easy to calculate overtime. Employers simply need to pay employee 1½ times their regular rate of pay for any hours worked over 8 hours in a day or 40 hours in a week (whichever is greater). Keep in mind that general holidays, vacation leave, and paid sick time are all considered hours of work for the purpose of calculating overtime.

To illustrate these calculations, we’ll cover a few examples below.

Daily Overtime Pay

In order to illustrate the daily overtime pay threshold, let’s use the example of Gabriel, who earns $30 per hour working in IT.

In one week, Gabriel worked the following hours:

Day Hours Worked
Monday 8
Tuesday 6
Wednesday 6
Thursday 8
Friday 10
Total Hours Worked: 38

Though Gabriel did not meet the weekly overtime threshold, he did work more than eight hours in one day. Therefore, Gabriel’s overtime pay can be calculated as follows:

  • Gabriel’s overtime rate: $30.00 x 1.5 = $45.00
  • Gabriel’s overtime pay: 2 hours of overtime x $45.00 = $90

However, things do get a bit more complicated if Gabriel meets the daily overtime threshold and the weekly overtime threshold. In this case, Gabriel would be paid for the greater amount. To see what this looks like, we’ll use another example.

The following week, Gabriel works the following hours:

Day Hours Worked
Monday 10
Tuesday 6
Wednesday 10
Thursday 6
Friday 10
Total Hours Worked: 42

In this case, Gabriel has worked a total of 42 hours, which would give him two hours of overtime using the weekly overtime threshold. However, on three of those days, he worked more than an eight-hour day, which means he worked six hours of daily overtime. Since the daily overtime total is greater than the weekly overtime total, this is the figure used to carry out the overtime calculations, which break down as follows:

  • Gabriel’s overtime rate: $30.00 x 1.5 = $45.00
  • Gabriel’s overtime pay: 6 hours of overtime x $45.00 = $270

Weekly Overtime Pay

To better understand the weekly overtime pay threshold, we’ll use the example of Sam, who makes $24.00 per hour as an administrative assistant.

In one week, Sam worked the following hours:

Day Hours Worked
Monday 8
Tuesday 8
Wednesday 8
Thursday 8
Friday 8
Total Hours Worked: 48

Though Sam never worked more than eight hours in a day, she did work more than 40 hours in a week. Therefore, Sam’s overtime pay can be calculated as follows:

  • Sam’s overtime rate: $24.00 x 1.5 = $36.00
  • Sam’s overtime pay: 8 hours of overtime x $36.00 = $288

Overtime for Salaried Employees

Calculating overtime for hourly employees is pretty simple, but what about salaried employees? Luckily, this is also fairly straightforward, it’s simply a matter of figuring out what the employee’s hourly rate would be. To illustrate this, we’ll use an example.

Tess earns $700 per week as a graphic designer. If she works 50 hours one week, her overtime pay would be calculated as follows:

  • Tess’ regular pay rate: $700 / 40 = $17.50 per hour
  • Tess’ overtime pay ate: $17.50 x 1.5 = $26.25
  • Tess’ overtime pay: $26.25 x 10 hours of overtime = $262.50
  • Tess’ total pay: $700 + $262.50 = $962.50

Agreements for Banked Time

In Manitoba, employees and employers can agree to bank an employee’s overtime hours. In order for these agreements to be valid, they must meet the following conditions:

  • 1½ hours of time is banked for each overtime hour worked
  • Time off is paid at the employee’s regular wage rate
  • Employers must schedule time-off during the employee’s regular hours
  • Employers must provide the time-off within three months of it being earned (unless Employment Standards authorizes a longer period)

In the event that an employee does not use their banked time within three months of earning it, the employer must pay out all banked hours at the employee’s regular wage rate.

Averaging Agreements

In Manitoba, employees can agree to work a modified schedule through an averaging agreement. Essentially, this means that an employer can schedule an employee to work longer hours per day at their regular rate of pay. The employer will then average the employee’s hours up to 12 weeks for an employee’s hours of work over a period to determine overtime pay.

This kind of arrangement allows employers to change the standard hours of work from eight hours per day and 40 hours per week, to a schedule that better fits their business needs. However, the new schedule must always average back to 40 hours per week.

With the information above, you should have everything you need to calculate overtime pay in Manitoba. So the next time you need your team to put in some extra hours, you can feel confident that you’ll be adding the right amount of overtime pay to their paycheques.

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