acalculator

How much back pay am I owed?

Enter your old and new pay rate and the time worked since the raise took effect. The back pay calculator works out the retroactive pay you are owed, with overtime at 1.5 times the raise, or the raise per paycheck for a salary.

Your numbers

I am paid
Back pay owed
$1,040.00

A raise of $2.00 owes $1,040.00 of back pay before taxes.

Raise
$2.00
Raise as a percent
10%
Back pay for regular hours
$1,040.00
Back pay for overtime hours
$0.00

Back pay owed: $1,040.00. A raise of $2.00 owes $1,040.00 of back pay before taxes.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Computes the back pay owed for a raise paid late: the raise times the hours worked since it took effect, with overtime at 1.5 times, or the salary raise per paycheck times the paychecks owed.

Example with the default inputs (I am paid By the hour, Old hourly rate $20.00, New hourly rate $22.00, Regular hours since the raise took effect 520, Overtime hours in that time 0): A raise of $2.00 owes $1,040.00 of back pay before taxes.

Method: Hourly: back pay = (new rate − old rate) × regular hours + 1.5 × (new rate − old rate) × overtime hours. Salary: back pay = (new salary − old salary) ÷ paychecks a year × paychecks owed.

  • The raise applies from its effective date to every hour or paycheck since; back pay is before taxes and other deductions.
  • Overtime hours are hours over 40 in a workweek, paid at 1.5 times the regular rate (FLSA); a retroactive raise raises that rate too.
  • Arithmetic is exact on the typed decimals; money shows to the cent and the percent to 2 decimals, halves up.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. I am paid By the hour, Old hourly rate $20.00, New hourly rate $22.00, Regular hours since the raise took effect 520, Overtime hours in that time 0 gives Back pay owed $1,040.00, Raise $2.00, Raise as a percent 10%, Back pay for regular hours $1,040.00, Back pay for overtime hours $0.00.Source: U.S. Department of Labor, Back Pay (a common remedy is that the employer make up the difference between what the employee was paid and what the employee should have been paid). https://www.dol.gov/general/topic/wages/backpay
  2. I am paid By the hour, Old hourly rate $15.00, New hourly rate $15.10, Regular hours since the raise took effect 400, Overtime hours in that time 30 gives Back pay owed $44.50, Back pay for regular hours $40.00, Back pay for overtime hours $4.50.Source: 29 CFR 778.303 Retroactive pay increases (a retroactive increase raises the regular rate for its period: a raise of 10 cents an hour is owed as 15 cents for each overtime hour). https://www.ecfr.gov/current/title-29/section-778.303
  3. I am paid A salary, Old yearly salary $52,000.00, New yearly salary $55,120.00, Paid Every two weeks (26 a year), Paychecks since the raise took effect 6 gives Back pay owed $720.00, Raise $3,120.00, Raise as a percent 6%, Raise per paycheck $120.00.Source: U.S. Department of Labor, Back Pay (a common remedy is that the employer make up the difference between what the employee was paid and what the employee should have been paid). https://www.dol.gov/general/topic/wages/backpay
  4. I am paid A salary, Old yearly salary $60,000.00, New yearly salary $63,000.00, Paid Monthly (12 a year), Paychecks since the raise took effect 3.5 gives Back pay owed $875.00, Raise per paycheck $250.00, Raise as a percent 5%.Source: U.S. Department of Labor, Back Pay (a common remedy is that the employer make up the difference between what the employee was paid and what the employee should have been paid). https://www.dol.gov/general/topic/wages/backpay
  5. I am paid By the hour, Old hourly rate $18.37, New hourly rate $19.02, Regular hours since the raise took effect 173.5, Overtime hours in that time 12.25 gives Back pay owed $124.72, Back pay for regular hours $112.78, Back pay for overtime hours $11.94, Raise as a percent 3.54%.Source: 29 CFR 778.303 Retroactive pay increases (a retroactive increase raises the regular rate for its period: a raise of 10 cents an hour is owed as 15 cents for each overtime hour). https://www.ecfr.gov/current/title-29/section-778.303

How it works

Paid by the hour:

  • Raise = new hourly rate − old hourly rate
  • Back pay for regular hours = raise × regular hours since the raise took effect
  • Back pay for overtime hours = 1.5 × raise × overtime hours in that time
  • Back pay owed = regular + overtime back pay

Paid a salary:

  • Raise = new yearly salary − old yearly salary
  • Raise per paycheck = raise ÷ paychecks a year (52 weekly, 26 every two weeks, 24 twice a month, 12 monthly)
  • Back pay owed = raise per paycheck × paychecks paid at the old salary

Both: raise as a percent = raise ÷ old rate × 100.

Rules:

  • Both rates must be more than $0, at most $1 billion. Hours are 0 to 1,000,000; an empty overtime box counts as 0. Paychecks are 0 to 10,000 and may include part of a pay period as a decimal.
  • The new rate must not be below the old one; otherwise there is no answer (a pay cut owes no back pay). Equal rates owe $0.
  • A result too large to show as a number gives no answer. So does a result that is not 0 but too small to show as a number.
  • The arithmetic is exact on the decimals you type. Money shows to the cent and the percent to 2 decimals, with halves rounded up (away from 0).

Assumptions

  • The raise applies to every hour, or every paycheck, from its effective date until it was paid. Back pay is shown before taxes and other deductions.
  • Overtime hours are hours over 40 in a workweek, paid at 1.5 times the regular rate. Enter only the overtime hours; the straight-time part of those hours is not counted twice.

Worked examples by hand

A $2 raise, 13 weeks late. 13 weeks × 40 hours = 520 hours. Back pay = (22 − 20) × 520 = $1,040. The raise is 2 ÷ 20 = 10%.

A 10-cent raise with overtime. Regular: 0.10 × 400 = $40. Overtime: 1.5 × 0.10 × 30 = $4.50. Back pay = $44.50.

A 6% salary raise, six paychecks late. Raise = 55,120 − 52,000 = $3,120 a year; ÷ 26 = $120 a paycheck. Back pay = 120 × 6 = $720.

Monthly pay, three and a half months late. Raise = 63,000 − 60,000 = $3,000; ÷ 12 = $250 a month. Back pay = 250 × 3.5 = $875.

Cents and part hours. Raise = 19.02 − 18.37 = $0.65. Regular: 0.65 × 173.5 = $112.775. Overtime: 1.5 × 0.65 × 12.25 = $11.94375. Back pay = 124.71875, shown as $124.72.

Other questions people ask

What is back pay?

Back pay is the difference between what you were paid and what you should have been paid. For a raise that takes effect before it shows up in your paycheck, it is the raise for every hour or paycheck in between, often called retro pay.

How do I calculate back pay for a raise?

For hourly pay, multiply the raise per hour by the hours worked since the effective date, and add 1.5 times the raise for each overtime hour. A $2 raise over 520 hours is $1,040. For a salary, divide the yearly raise by the number of paychecks in a year and multiply by the paychecks paid at the old rate.

Does back pay include overtime?

Yes. Under federal rules a retroactive raise raises the regular rate for the whole period, so overtime hours earn 1.5 times the raise. The Department of Labor’s example: a 10-cent raise is owed as 15 cents for each overtime hour.

How is back pay for a salary worked out?

Divide the yearly raise by your paychecks a year: 26 every two weeks, 24 twice a month, 52 weekly or 12 monthly. A raise from $52,000 to $55,120 is $3,120 a year, or $120 a paycheck every two weeks; six paychecks late, you are owed $720.

Is back pay taxed?

Yes. Back pay is wages, so income tax, Social Security and Medicare are withheld when it is paid. This calculator shows the amount before taxes and other deductions.

What if my employer owes me back wages for other reasons?

Unpaid minimum wage or overtime are back wages too, and the Department of Labor’s Wage and Hour Division can help recover them. This calculator covers the most common case: a raise paid late.