Standby Pay (also called on-call pay) is compensation an employee receives for being available to work outside of their regular hours, even if they are not actively working. This is common in industries like healthcare, IT, emergency services, and maintenance, where employees must be ready to respond quickly if needed.
How Does Standby Pay Work?
When an employee is required to remain reachable or stay near the workplace, employers may provide standby pay as an incentive for availability. Key points:
- Paid for availability, not just hours worked: Employees might not perform actual work but are compensated for being “on-call.”
- Varies by employer and policy: Some employers pay a flat rate per day or hour, while others pay a percentage of the employee’s regular hourly wage.
- May be included in overtime calculations depending on labor laws and company policies.
How is Standby Pay Calculated?
Standby pay can be calculated in several ways:
- Flat Rate Method: Employees receive a fixed amount per on-call day or hour.
- Example: $50 per 24-hour on-call period.
- Hourly Percentage Method: Employees receive a percentage of their normal hourly rate for standby hours.
- Example: 25% of $20/hour = $5/hour standby pay.
- Combination Method: Base standby pay plus extra if the employee is called in to work.
| Calculation Type | Example | Notes |
| Flat Rate | $50/day | Simple and predictable |
| Hourly Percentage | 25% of $20/hr = $5/hr | Scales with wage |
| Call-In Bonus | $50 standby + $20/hour if called | Pays for both availability and actual work |
Standby Pay vs Other Pay Types
| Pay Type | When It Applies | How It’s Paid |
| Standby Pay | Employee is on-call but not actively working | Flat rate or % of hourly wage |
| Overtime Pay | Employee works beyond regular hours | 1.5x regular hourly rate (or as per state law) |
| Call-In Pay | Employee is called in from standby | Extra pay on top of standby pay for hours worked |
How Much is Standby Pay?
There is no federal requirement for a fixed standby pay rate in the U.S. Employers set the rate, but it must comply with minimum wage and overtime rules if applicable.
- Straight-Time vs Overtime: Standby pay itself is generally paid at straight-time. If an employee performs work during standby, overtime rules may apply depending on total hours worked.
Related Payroll and Compensation Concepts
- Severance pay — affects how standby pay may trigger overtime
- Pay stub maker — tracks all types of pay including standby
- Post-Tax Deductions — affects net pay for employees receiving standby pay
- 401k Contribution — standby pay counts toward taxable wages impacting contribution limits
- Accrued Leave Meaning — payout can affect total taxable income
FAQs About Standby Pay
Q1. What is standby pay?
It’s compensation for employees required to remain available for work outside their regular schedule.
Q2. How does standby pay work?
You get paid for being “on-call,” even if you’re not performing active work, typically at a flat rate or percentage of your hourly wage.
Q3. How is standby pay calculated?
It can be a flat rate per day, a percentage of your hourly wage, or a combination with additional pay if called in.
Q4. How much is standby pay?
Rates vary by employer; there’s no federal fixed rate. Must comply with minimum wage laws.
Q5. Does standby pay have to be paid at a straight time?
Yes, standby pay itself is usually paid at straight-time. Work performed while on-call may qualify for overtime.
Q6. How to calculate standby pay?
- Flat Rate: Fixed amount per on-call day
- Hourly Percentage: Percentage of regular wage
- Call-In Bonus: Standby + pay for hours worked
Standby Pay and Your Pay Stub
Standby pay should appear on your paycheck like other earnings, showing current and YTD amounts. Proper tracking ensures accurate reporting in the payroll register and compliance with IRS guidance.
To see how standby pay looks on a professional pay stub, try our Payroll stub geneator — it includes standby, regular hours, overtime, and deductions.
