In what situation does a pilot earn a percentage higher than the standard pay rate during "Overtime"?

In the context of pilot compensation, a pilot earns a percentage higher than the standard pay rate during "Overtime" when exceeding a PCH (Pilot Compensation Hours) threshold. This means that once a pilot's working hours surpass a predetermined limit set by the airline's policy, they are eligible for increased pay as part of their overtime compensation package. This policy is often designed to ensure that pilots are fairly compensated for their time and effort, especially when they are called to work longer than expected due to operational needs.

The PCH threshold serves as a critical point for compensation adjustments, thus promoting fairness and incentivizing pilots to take on additional responsibilities when necessary. Beyond just the financial aspect, it also addresses pilot fatigue and work-life balance by establishing clear guidelines on excessive working hours and offering appropriate remuneration for them.