# How much back pay am I owed?

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.

- Page: https://www.acalculator.org/finance/back-pay-calculator
- JSON spec: https://www.acalculator.org/finance/back-pay-calculator.json
- Version: 7f5638a63fbb

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| basis | I am paid | By the hour, or a yearly salary paid in equal paychecks. |
| old | Old hourly rate | What you were paid an hour before the raise. |
| new | New hourly rate | Your hourly rate after the raise. |
| hours | Regular hours since the raise took effect | Straight-time hours you worked from the effective date until the raise was paid. |
| ot | Overtime hours in that time | Hours over 40 in a workweek in the same time, paid at 1.5 times the regular rate. Optional. |
| olds | Old yearly salary | Your yearly salary before the raise. |
| news | New yearly salary | Your yearly salary after the raise. |
| freq | Paid | How often you are paid. |
| checks | Paychecks since the raise took effect | Paychecks paid at the old salary since the effective date; part of a pay period as a decimal. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| back | Back pay owed | The raise owed for the time already worked, before taxes. |
| raise | Raise | New rate − old rate: per hour, or per year for a salary. |
| percent | Raise as a percent | (New rate − old rate) ÷ old rate × 100. |
| regular | Back pay for regular hours | Raise per hour × regular hours. |
| overtimePay | Back pay for overtime hours | 1.5 × raise per hour × overtime hours. |
| perPaycheck | Raise per paycheck | Yearly raise ÷ paychecks a year. |

## 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.

## Assumptions

- 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.

## Worked examples

1. basis = hourly, old = $20.00, new = $22.00, hours = 520, ot = 0 gives back = $1,040.00, raise = $2.00, percent = 10%, regular = $1,040.00, overtimePay = $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. basis = hourly, old = $15.00, new = $15.10, hours = 400, ot = 30 gives back = $44.50, regular = $40.00, overtimePay = $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. basis = salary, olds = $52,000.00, news = $55,120.00, freq = biweekly, checks = 6 gives back = $720.00, raise = $3,120.00, percent = 6%, perPaycheck = $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. basis = salary, olds = $60,000.00, news = $63,000.00, freq = monthly, checks = 3.5 gives back = $875.00, perPaycheck = $250.00, 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. basis = hourly, old = $18.37, new = $19.02, hours = 173.5, ot = 12.25 gives back = $124.72, regular = $112.78, overtimePay = $11.94, 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.

## FAQ

### 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.

## Sources

- U.S. Department of Labor, Back Pay: a common remedy for wage violations is an order that the employer make up the difference between what the employee was paid and what the employee should have been paid, often called back pay. https://www.dol.gov/general/topic/wages/backpay (retrieved 2026-10-19)
- 29 CFR 778.303 Retroactive pay increases: a retroactive pay increase raises the regular rate of pay for the period of its retroactivity; an employee awarded a retroactive increase of 10 cents an hour is owed a retroactive increase of 15 cents for each overtime hour worked in the period. https://www.ecfr.gov/current/title-29/section-778.303 (retrieved 2026-10-19)
- U.S. Department of Labor, Overtime Pay: unless exempt, employees covered by the Fair Labor Standards Act must receive overtime pay for hours worked over 40 in a workweek at not less than time and one-half their regular rates of pay. https://www.dol.gov/agencies/whd/overtime (retrieved 2026-10-19)