Overtime Pay Calculator UK 2026

Overtime pay is calculated by multiplying your hourly rate by the number of overtime hours worked and the overtime multiplier (e.g., 1.5× for time-and-a-half). For example, if your hourly rate is £12 and you work 5 overtime hours at time-and-a-half: £12 × 1.5 × 5 = £90 overtime pay.

UK law doesn't mandate higher overtime rates, but many employment contracts specify them. Always check your contract or staff handbook for your specific overtime terms. If you're unsure about your calculations, compare them against your payslip or use this calculator to verify accuracy.

No, there is no legal requirement in UK law to pay overtime at a higher rate unless specified in your employment contract. Overtime rates are contractual, not statutory. However, if working extra hours brings your average pay below the National Minimum Wage (£12.71/hour for over-21s in 2026), your employer must compensate to ensure compliance.

Many employers voluntarily offer enhanced rates like time-and-a-half to remain competitive and motivate staff. If your contract promises overtime pay, your employer is legally obligated to honour it. Always get overtime agreements in writing to avoid disputes.

Time-and-a-half is the most common overtime rate in the UK, paying 150% (1.5×) of your normal hourly rate for extra hours worked. If your standard rate is £10/hour, time-and-a-half pays £15/hour. This typically applies to evening work, weekends, or hours beyond your contracted schedule.

The term originated from industrial relations practices and has become standard across most UK sectors. Some employers offer time-and-a-half for all overtime, while others reserve it for specific circumstances like weekend work, with standard rates (1×) applying to weekday overtime. Check your contract to understand when time-and-a-half applies to you.

Double-time pays 200% (2×) of your normal hourly rate for overtime. If your standard rate is £10/hour, double-time pays £20/hour. This enhanced rate typically applies to bank holidays, unsociable hours (often defined as 11pm-6am), or emergency call-outs as specified in employment contracts.

Double-time recognises the significant impact of working during traditionally non-working times. It's particularly common in healthcare, emergency services, utilities, and 24/7 operations. Some contracts offer triple-time (3×) for exceptional circumstances like Christmas Day working. These premium rates help employers staff difficult shifts and fairly compensate workers for disrupting personal time.

Yes, regular overtime must be included in holiday pay calculations under UK law. If you consistently work overtime that is normal part of your working pattern (even if voluntary), it should be factored into your average weekly earnings when calculating holiday pay entitlement.

This applies to the first 4 weeks of annual leave (the statutory minimum). Employers can exclude overtime from the additional 1.6 weeks of leave if stated in contracts. Recent cases have led to significant backdated holiday pay claims where employers wrongly excluded overtime. If your holiday pay seems low and you work regular overtime, check whether it's being properly included - you may be entitled to additional payments.

No, overtime pay is taxed the same as regular income through PAYE. Income Tax and National Insurance contributions are calculated on your total earnings (basic + overtime) at the standard rates. There is no special tax treatment for overtime in the UK.

However, overtime can push you into a higher tax band. For example, if basic salary keeps you in the 20% tax band but overtime takes you above £50,270, the excess is taxed at 40%. This doesn't mean overtime isn't worth it - you still take home 60% of the excess rather than 80% of basic rate earnings. Understanding progressive taxation helps you make informed decisions about accepting overtime opportunities.

Only if your employment contract includes an overtime clause requiring it. Otherwise, overtime is generally voluntary. However, UK law limits working hours to an average of 48 hours per week over 17 weeks (unless you've signed an opt-out agreement). Employers cannot force unpaid overtime that brings your pay below minimum wage.

Contractual clauses often use phrases like "required to work reasonable additional hours" which makes some overtime compulsory. What's "reasonable" depends on circumstances including notice given, impact on work-life balance, and industry norms. Consistently refusing contractual overtime without good reason could lead to disciplinary action. If unsure, seek advice from ACAS or a union representative.

There's no legal definition of overtime hours in UK law. It's typically defined in your employment contract as hours worked beyond your standard contracted hours (e.g., over 37.5 or 40 hours per week). Some contracts specify overtime after 8 hours per day, while others calculate it weekly or monthly.

Common thresholds include: 37.5 hours/week (typical office hours), 40 hours/week (common in retail/hospitality), or 48 hours/week (maximum under Working Time Regulations). Part-time workers' overtime typically begins after their contracted hours, not at 37.5 or 40. For example, if contracted for 20 hours/week, hour 21 onwards might be overtime. Always clarify your specific overtime threshold with your employer to avoid misunderstandings about pay expectations.