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For example suppose an employee is paid $10/hr and makes $15/hr when working overtime. If the employee worked 50 hours total, 10 of which were overtime hours, he would have $500 in regular base pay and $50 in overtime base pay:
50 hours × $10 =$500 regular base pay
10 hours × $5 (extra $ on top of regular pay) = $50 overtime base pay

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imageIncentive Base.jpg
titleFig.58 Example of Incentive Base Pay

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