Pennsylvania Overtime Calculator: Overtime Pay & Take-Home Pay

Pennsylvania overtime pay rights and wage standards operate under a coordinated statutory framework: the Pennsylvania Minimum Wage Act of 1968 (43 P.S. § 333.101 et seq.), regulations codified at 34 Pa. Code §§ 231.1–231.115, and the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207). Both state and federal law protect non-exempt hourly employees by guaranteeing overtime premiums. Below is the authoritative breakdown of pennsylvania overtime laws, pennsylvania overtime pay rules, withholding regulations enforced by the Pennsylvania Department of Revenue, and wage enforcement under the Pennsylvania Department of Labor & Industry (PA DOL&I).

1. The Overtime Rule: 43 P.S. § 333.104(c) (Pennsylvania Minimum Wage Act)

Under Section 4(c) of the Pennsylvania Minimum Wage Act (43 P.S. § 333.104(c)) and 34 Pa. Code § 231.41, employers must pay each non-exempt employee overtime compensation at a rate not less than 1.5× the regular rate for all hours worked in excess of 40 hours in a defined workweek.

How does overtime work in pa? Pennsylvania strictly enforces a weekly standard. Many workers inquire: how does overtime pay work in pennsylvania when working extended shifts? Pennsylvania has no daily overtime rule and no statutory 7th-consecutive-day premium. An employee working four 10-hour days or three 12-hour shifts does not trigger overtime under state law because their total weekly hours do not exceed 40. A standard pennsylvania overtime calculation evaluates the cumulative 7-day workweek only.

Hospital & Residential Care Exception: The only niche statutory daily exception is the "8-and-80" rule (codified under 43 P.S. § 333.104(c) following 2012 amendments). Under this provision, employers operating hospitals or residential patient-care institutions may enter into a prior written agreement with staff to adopt a 14-consecutive-day work period in lieu of the standard 7-day workweek. Under an 8-and-80 agreement, the employer must pay 1.5× for any hours worked past 8 in any single workday and for all hours worked past 80 across the 14-day schedule.

2. Minimum Wage: $7.25/hr Tied to the Federal Floor (43 P.S. § 333.104(a))

Under 43 P.S. § 333.104(a), the Pennsylvania statutory minimum wage is tied to the federal minimum wage under the FLSA. The Commonwealth rate has remained at $7.25 per hour since July 24, 2009. Under pa overtime laws 2026, the basic statewide minimum wage remains unchanged at $7.25/hr, yielding a statutory minimum overtime floor of $10.88 per hour ($7.25 × 1.5).

• Tipped Employees: Under 34 Pa. Code § 231.101a, employers may claim a maximum tip credit of $4.42 per hour against the $7.25 minimum wage, provided the employee regularly receives more than $135 per month in tips. Consequently, employers must pay tipped employees a direct cash wage of at least $2.83 per hour. Direct cash wages plus actual received tips must total at least $7.25 per hour for every hour worked; if tips fall short, the employer is legally mandated to make up the difference.
• Tip Tax Policy: Pennsylvania law provides no pennsylvania overtime tip tax exemption — direct cash wages, received tips, and overtime premiums are all treated as taxable gross compensation under Pennsylvania Department of Revenue guidelines.

3. Preemption: No Higher Local Minimum Wages Permitted in Pennsylvania

Unlike Illinois, New York, or California — where major metropolitan areas enforce substantially higher local minimum wages — Pennsylvania operates under strict state statutory preemption. Under 43 P.S. § 333.115, the Pennsylvania Minimum Wage Act preempts local municipalities and county governments from enacting local minimum wage ordinances.

No municipality, including Philadelphia, Pittsburgh, Allentown, or Erie, is legally permitted to mandate a citywide minimum wage above the state's $7.25 per hour baseline for private employers. While Philadelphia has passed prevailing-wage standards for city contractors, the general minimum wage throughout the entire Commonwealth of Pennsylvania remains $7.25/hr. Our calculator defaults to this uniform state rate for all Pennsylvania employees.

4. Salaried Employees: Pennsylvania Overtime Exemptions Follow the FLSA

Under pennsylvania overtime laws salaried employees are not automatically exempt from statutory overtime pay simply by virtue of receiving a fixed salary. To be exempt, employees must meet both the salary threshold and the substantive duties tests established under 34 Pa. Code §§ 231.81–231.84, which mirror federal regulations:

• Salary Level Threshold: The employee must receive a guaranteed salary of at least $684.00 per week ($35,568.00 annually). The Pennsylvania Department of Labor & Industry (PA DOL&I) enforces the federal 2019 salary level; Pennsylvania establishes no higher independent state salary floor.
• Duties Tests: The worker's actual daily job responsibilities must satisfy the statutory legal criteria for bona fide Executive, Administrative, or Professional exemptions. Titles such as "lead," "manager," or "coordinator" carry no legal weight if duties do not align with statutory criteria.

Salaried workers earning less than $684 per week, or who fail the duties tests, are legally non-exempt. When a non-exempt salaried employee works more than 40 hours in a workweek, they are owed 1.5× overtime pay. Their regular hourly rate is determined by dividing their weekly salary by the number of hours the salary is intended to compensate.

5. Breaks and Rest Periods: Commonwealth Requirements for Adult Workers

Pennsylvania statutory law contains no requirement for employers to provide meal breaks, rest breaks, or a mandatory one-day-rest-in-seven for adult workers aged 18 and older. Employers in Pennsylvania may schedule adult employees for uninterrupted shifts of any length without providing meal intervals, unless a collective bargaining agreement or company policy provides otherwise. If an employer chooses to provide short rest breaks (lasting 20 minutes or fewer), federal and state law require those breaks to be compensated as paid hours worked.

Minor Protections: In contrast, under the Pennsylvania Child Labor Act (43 P.S. §§ 40.1–40.14), employees under 18 years of age who work continuous shifts of 5 hours or more are legally entitled to an uninterrupted, duty-free meal break of at least 30 minutes.

6. Pennsylvania Taxes Overtime: Flat 3.07% State Tax & The Federal OBBBA Slice

Does pennsylvania tax overtime? Yes. Under the Pennsylvania Tax Reform Code of 1971 (72 P.S. § 7301 et seq.) and Department of Revenue regulations, Pennsylvania imposes a flat 3.07% personal income tax rate on all compensation earned by residents and non-residents working in the state. Overtime pay is taxed as ordinary compensation at the exact same pa overtime tax rate of 3.07% as base straight-time earnings. Because pennsylvania overtime tax rules apply to all gross compensation without exception, the flat 3.07% pa overtime tax withholding applies to straight pay and overtime alike.

Unlike federal tax law, Pennsylvania has no standard deduction and no personal exemption allowances for withholding. Employers withhold a flat 3.07% from the very first dollar of taxable compensation. There is no Pennsylvania state equivalent of federal Form W-4 because withholding is linear across all pay ranges. Furthermore, Pennsylvania is one of the few states that taxes employee elective deferrals into 401(k) and 403(b) retirement plans as compensation at the time of contribution.

How does no tax on overtime work in pa? Workers frequently ask whether no tax on overtime pa legislation exempts overtime from Commonwealth income tax. Under current state law, Pennsylvania provides no state tax exemption for overtime premiums. The federal One Big Beautiful Bill Act (OBBBA § 225) introduced a below-the-line deduction on federal Form 1040 Schedule 1-A for the 0.5× statutory overtime premium slice for tax years 2025 through 2028 (which you can estimate with our no tax on overtime calculator). However, Pennsylvania operates an independent, non-conforming personal income tax system that does not incorporate federal deductions or federal Adjusted Gross Income (AGI). As detailed in Boyer & Ritter's 2025–26 Pennsylvania budget analysis, the Commonwealth taxes the full gross overtime premium at the flat 3.07% rate. When using a pa overtime tax calculator or searching for a pa no tax on overtime calculator, note that the 0.5× OBBBA deduction provides federal tax relief only.

7. Local Tax Reality: Act 32 Earned Income Tax (EIT) & Philadelphia Wage Tax

A crucial feature of Pennsylvania payroll is local taxation. Under the Local Tax Enabling Act (Act 32, 53 P.S. § 6924.101 et seq.), the vast majority of Pennsylvania municipalities and school districts levy a local Earned Income Tax (EIT) — commonly around 1.0%, though rates vary from 0.5% to over 3% depending on jurisdiction. Employers must withhold local EIT based on the employee's municipality of residence or workplace.

The Philadelphia Exception: The City of Philadelphia is permanently carved out of Act 32 and operates under the Sterling Act. Philadelphia levies its own distinct city wage tax (currently 3.75% for residents and 3.44% for non-residents) which is withheld in addition to the Commonwealth's 3.07% tax. Because local EIT rates depend entirely on municipal boundary lines, local taxes are NOT included in this state calculator. If you perform work in Philadelphia, use our dedicated Philadelphia wage tax calculator for a complete local net pay calculation.

8. Wage Payment and Collection Law: Timely Pay & Statutory Penalties (43 P.S. § 260.1)

The Pennsylvania Wage Payment and Collection Law (WPCL, 43 P.S. §§ 260.1–260.45) mandates that employers pay all wages, including earned overtime, on regular paydays designated in advance. The interval between the end of a pay period and the payment date cannot exceed the standard payroll agreement or 15 days.

When an employee separates from employment, whether voluntarily or through discharge, all earned wages and accrued overtime must be paid no later than the next regular scheduled payday. If an employer withholds earned overtime for more than 30 days past the scheduled payday without a good-faith dispute, the WPCL imposes a mandatory statutory liquidated damages penalty of 25% of the unpaid wages or $500, whichever is greater, plus full payment of back wages and the employee's reasonable attorney's fees.

9. Filing Unpaid Overtime Claims in Pennsylvania

If your employer fails to pay lawful 1.5× overtime compensation, you have two primary administrative and judicial avenues under Commonwealth and federal law:

• PA DOL&I Administrative Complaint: Submit a formal wage complaint to the Pennsylvania Department of Labor & Industry, Bureau of Labor Law Compliance. The Bureau investigates wage complaints and enforces compliance with the Minimum Wage Act and WPCL. While private court actions under the WPCL allow claims up to 3 years, PA DOL&I guidelines request that administrative wage claims be filed within 2 years of when the work was performed. Do not delay in asserting your rights.
• Private Civil Lawsuit: Employees may file a civil lawsuit in court under 43 P.S. § 260.9a and the federal FLSA (29 U.S.C. § 216(b)). Prevailing workers are entitled to recover 100% of unpaid overtime, statutory penalties or liquidated damages, and mandatory court costs and attorney's fees.
• Preserve Your Records: Maintain personal records of your scheduled shifts, clock-in/out records, timesheets, and pay stubs to substantiate your claim.