Overtime premium refers to:
ABonus payment
BTotal overtime wage
CNormal time wage
DExtra rate beyond normal
Answer & Solution
Correct answer: D. Extra rate beyond normal
1. Overtime wage has two components: the regular rate for the extra hour, and a premium above it.
2. The premium is the extra rate paid beyond the normal wage for the overtime hour.
3. The total overtime wage thus equals normal wage plus premium.
4. Hence the premium itself is only the extra portion above the normal rate.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.5 ¶2_
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