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What is Regular Pay?


Regular Pay is the constant salary an employee receives for his basic working hours, excluding overtime allowances like overtime pay or bonuses. This is the standard payment an employee expects to receive for completing his regular duty within his ordinary working schedule.


What is Retro Regular Pay?


Retro Regular Pay, also called retroactive regular Pay, is the payment of wages done in the past and was not paid at a convenient time. This happens when an employer understands that an employee was underpaid in the past for a certain amount of time, and the employer resolves the situation by sending the pending amount to the employee of the previous period.


How to Calculate Regular Pay?


Calculating regular Pay varies on an hourly basis and a salaried basis. Let’s break down the two methods below:


Hourly Pay


If an employee is paid on an hourly system, you can calculate the regular Pay by multiplying the number of regular hours worked in a pay period by the hourly wage.


Formula: Regular Pay = No. Of Regular Hours Worked * Hourly Wage

For example, If an employee work for 40 hours a week and his salary is $15: 

Regular Pay = 40 hours * $15/hour = $600 (weekly pay).

Salaried Pay


Salaried employees’ regular payment is calculated by dividing their annual salary by the number of pay periods in a year.

Formula: Regular Pay = Annual Salary / Number of pay periods


For example, If an employee’s annual salary is $50,000 and is paid bi-weekly.


Regular Pay = $50,000 / 26 = $1,923.08 (bi-weekly Pay).


Also, See: Gross Pay | Net Pay | Overtime Pay | Base Pay | Incentive Pay

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