Call-Back Pay Meaning | How does Callback Pay Work?

What is Call-Back Pay?

Call-back pay is an occasional allowance given to an employee when they are called from their off-duty hours for additional work. It is wages other than their regular pay.

Callback pay is an additional pay earned whenever an employee is called back by the employer from his/her notice period. The employer also appraises the employee’s salary.

Even if the time actually spent working is less than two (2) hours, a minimum of two (2) hours is paid at one and a half times the standard hourly rate, or if the number of hours worked is greater than two (2), the pay rate will be one and a half times the standard rate.

Call-back pay has some benefits. Callbacks can result in a lower abandonment rate, faster handling times, and a greater first-contact resolution. Additionally, they can raise employee morale and consumer satisfaction.

How Much is Call-Back Pay?

Employees called back to work after completion of the employee’s regular workday shall be compensated at the rate of time and one-half (1½) of the regular rate of pay.

Call-back pay is calculated as described below. Find out how many pay periods there are in a year. To determine how much an employee makes per pay period, divide their wage by the number of pay periods. Divide this sum by the total number of pay periods for which the employee is due call-back pay.

Also, See: Wage Garnishments