How is overtime calculated in the UK?

Overtime is calculated by multiplying your overtime hours by your overtime rate. Common rates are: standard (1×), time and a half (1.5×), or double time (2×). For example: 10 overtime hours at £15/hour time and a half = 10 × (£15 × 1.5) = £225 gross.

Is overtime taxed more heavily UK?

Overtime is taxed at the same rates as regular pay — it's not taxed more heavily. However, if overtime pushes your total earnings into a higher tax bracket, that portion is taxed at the higher rate. There's no special 'overtime tax rate.'

Do employers have to pay overtime UK?

No — there's no legal requirement for employers to pay overtime or to pay enhanced rates. Overtime pay depends entirely on your employment contract. However, your average hourly rate (including overtime hours) must still meet National Minimum Wage.

What is time and a half UK?

Time and a half means you're paid 1.5 times your normal hourly rate for overtime hours. For example, if your normal rate is £16/hour, time and a half is £24/hour. Similarly, double time is 2× your rate (£32/hour in this example).

Overtime Calculator UK — How to Calculate Overtime Pay | PocketWise

Understanding how to calculate overtime pay helps you check your payslips and negotiate fair compensation for extra hours worked.

Overtime Rate Types

Common Overtime Rates

Rate Type	Multiplier	Formula	Example (£15/hr base)
Standard (1×)	1.0	Base rate	£15.00
Time and a quarter	1.25	Base × 1.25	£18.75
Time and a third	1.33	Base × 1.33	£19.95
Time and a half	1.5	Base × 1.5	£22.50
Double time	2.0	Base × 2.0	£30.00

When Each Rate Typically Applies

Rate	Common Situations
Standard (1×)	Weekday overtime, first few OT hours
Time and a quarter	Some shift work
Time and a half	Evenings, Saturdays, overtime beyond set hours
Double time	Sundays, bank holidays, night shifts

Note: These are common arrangements, not legal requirements.

Basic Overtime Calculation

The Formula

Overtime Pay = Overtime Hours × Hourly Rate × Multiplier

Step-by-Step Example

Scenario: You earn £16/hour and worked 5 hours overtime at time and a half.

Step	Calculation
1. Hourly rate	£16.00
2. Multiplier (time and a half)	1.5
3. Overtime rate	£16 × 1.5 = £24.00
4. Hours worked	5
5. Overtime pay	£24 × 5 = £120.00

Overtime Pay Tables

Time and a Half Rates

Base Hourly	OT Rate (1.5×)	5 Hours OT	10 Hours OT	20 Hours OT
£10.00	£15.00	£75	£150	£300
£12.00	£18.00	£90	£180	£360
£12.71 (NLW, 2026/27)	£19.07	£95	£191	£381
£14.00	£21.00	£105	£210	£420
£15.00	£22.50	£113	£225	£450
£16.00	£24.00	£120	£240	£480
£18.00	£27.00	£135	£270	£540
£20.00	£30.00	£150	£300	£600
£22.00	£33.00	£165	£330	£660
£25.00	£37.50	£188	£375	£750
£30.00	£45.00	£225	£450	£900

Double Time Rates

Base Hourly	OT Rate (2×)	5 Hours OT	10 Hours OT	20 Hours OT
£10.00	£20.00	£100	£200	£400
£12.00	£24.00	£120	£240	£480
£12.71 (NLW, 2026/27)	£25.42	£127	£254	£508
£14.00	£28.00	£140	£280	£560
£15.00	£30.00	£150	£300	£600
£16.00	£32.00	£160	£320	£640
£18.00	£36.00	£180	£360	£720
£20.00	£40.00	£200	£400	£800
£22.00	£44.00	£220	£440	£880
£25.00	£50.00	£250	£500	£1,000
£30.00	£60.00	£300	£600	£1,200

The National Living Wage (age 21+) is £12.71/hour from April 2026. Under-21 National Minimum Wage rates are lower — check gov.uk for the current age-banded rates.

Calculating Hourly Rate from Salary

If You’re Salaried

Your hourly rate: Annual Salary ÷ 52 ÷ Weekly Hours

Annual Salary	Weekly Hours	Hourly Rate
£25,000	37.5	£12.82
£30,000	37.5	£15.38
£35,000	37.5	£17.95
£40,000	40	£19.23
£45,000	40	£21.63
£50,000	40	£24.04

Salaried Overtime Example

Scenario: £35,000 salary, 37.5 hour week, 8 hours overtime at time and a half

Step	Calculation
Hourly rate	£35,000 ÷ 52 ÷ 37.5 = £17.95
Time and a half	£17.95 × 1.5 = £26.93
Overtime earnings	£26.93 × 8 = £215.44

Mixed Rate Overtime

When Different Rates Apply

Many employers use tiered overtime rates:

Hours	Rate
First 40 hours	Standard (1×)
41-48 hours	Time and a half (1.5×)
Over 48 hours	Double time (2×)

Mixed Rate Example

Scenario: £15/hour base, worked 52 hours in one week

Hours	Rate	Calculation	Amount
40 hours	1× (£15)	40 × £15	£600.00
8 hours (41-48)	1.5× (£22.50)	8 × £22.50	£180.00
4 hours (49-52)	2× (£30)	4 × £30	£120.00
Total			£900.00

Annual Overtime Earnings

Regular Weekly Overtime

Base Rate	OT Rate (1.5×)	OT Hours/Week	Extra/Week	Extra/Year
£12	£18	5	£90	£4,680
£12	£18	10	£180	£9,360
£15	£22.50	5	£113	£5,850
£15	£22.50	10	£225	£11,700
£18	£27	5	£135	£7,020
£18	£27	10	£270	£14,040
£20	£30	5	£150	£7,800
£20	£30	10	£300	£15,600

Impact on Annual Salary

Base Salary	Regular OT (5 hrs/wk at 1.5×)	Total Annual
£25,000	£4,993	£29,993
£30,000	£5,991	£35,991
£35,000	£6,990	£41,990
£40,000	£7,488	£47,488

Tax on Overtime

How Overtime Is Taxed

Overtime is taxed as normal income — same rates as your basic pay:

Total Annual Income	Tax Rate
Up to £12,570	0%
£12,571-£50,270	20%
£50,271-£125,140	40%
Over £125,140	45%

Tax Trap Example

Scenario	Base	+ OT	Total	Tax Impact
Before OT	£48,000	-	£48,000	All at 20%
With £5,000 OT	£48,000	£5,000	£53,000	£2,730 taxed at 40%, £2,270 taxed at 20%

The £5,000 OT pays: Income Tax of £1,546 (£454 at 20% on the £2,270 within the basic-rate band, plus £1,092 at 40% on the £2,730 above it), and National Insurance of £236.20 (£181.60 at 8% on the £2,270, plus £54.60 at 2% on the £2,730) — total deductions of £1,782.20, leaving ~£3,218 net from the £5,000 rise.

Overtime Net Pay Estimates

Gross OT	Basic Rate (20% + 8% NI)	Higher Rate (40% + 2% NI)
£100	£72 net	£58 net
£200	£144 net	£116 net
£500	£360 net	£290 net
£1,000	£720 net	£580 net

Including current employee National Insurance rates of 8% (up to £50,270) and 2% (above £50,270)

Working Time Regulations

Legal Hours Limits

Regulation	Limit
Maximum working week	48 hours average (over 17 weeks)
Can opt out	Yes — must be voluntary
Night workers	8 hours per 24-hour period
Rest breaks	20 mins if working 6+ hours
Daily rest	11 hours between shifts
Weekly rest	24 hours per week (or 48 per fortnight)

Opting Out of 48-Hour Week

Factor	Detail
Must be voluntary	Can’t be forced
In writing	Written agreement required
Can cancel	With 7 days to 3 months notice
Still need breaks	Rest requirements still apply

Overtime and Minimum Wage

Your total pay ÷ total hours must meet NMW:

Scenario	Base Hours	OT Hours	Total Hours	Total Pay	Per Hour	NMW Check (2026/27, £12.71)
OK	37.5	10	47.5	£570	£12.00	Below NMW!
OK	37.5	10	47.5	£603.73	£12.71	At NMW ✓
OK	37.5	10	47.5	£650	£13.68	Above NMW ✓

If unpaid overtime reduces your effective rate below NMW, that’s illegal.

Salaried Workers and Unpaid Overtime

Calculating Your True Hourly Rate

Salary	Contracted Hours	Actual Hours Worked	True Hourly Rate
£35,000	37.5	37.5	£17.95
£35,000	37.5	45	£14.96
£35,000	37.5	50	£13.46
£35,000	37.5	55	£12.24

Is It Worth the Overtime?

Questions to consider:

Factor	Consider
Paid overtime?	If not, what’s true hourly rate?
Career benefit?	Does it help promotion prospects?
Expectation?	Is it genuinely expected?
Sustainable?	Can you maintain it long-term?
Alternatives?	Could that time earn money elsewhere?

Bank Holiday and Weekend Rates

Common Premium Rates

Day/Time	Typical Rate	£15/hr Example
Saturday	1.25-1.5×	£18.75-£22.50
Sunday	1.5-2×	£22.50-£30.00
Bank holiday	1.5-2×	£22.50-£30.00
Night shift	1.25-1.5×	£18.75-£22.50

Bank Holiday Earnings Example

Working Christmas Day at £15/hour double time:

Hours	Calculation	Amount
8 hours	8 × £30	£240

vs normal day: 8 × £15 = £120

Extra earned: £120

TOIL (Time Off In Lieu)

How TOIL Works

Factor	Detail
What it is	Time off instead of overtime pay
Calculation	Usually hour-for-hour
Enhanced TOIL	Sometimes 1.5 or 2 hours off per OT hour
When to take	Agreed with employer

TOIL vs Overtime Pay

10 Hours OT	Overtime Pay (1.5×)	TOIL Value
£15/hr worker	£225 gross (~£162 net at basic rate)	10-15 hours off
£20/hr worker	£300 gross (~£216 net at basic rate)	10-15 hours off

TOIL may be better if:

You value time off
You’re in higher tax bracket
You need flexibility

Overtime pay may be better if:

You need the money now
Tax impact is minimal
TOIL is hard to take

Contracted vs Voluntary Overtime

Contracted Overtime

Feature	Detail
In your contract	Can be required
Refusal	May be breach of contract
Rates	Usually specified
Predictable	Know what to expect

Voluntary Overtime

Feature	Detail
Your choice	Can decline
Availability	May not always be offered
Rates	Check before accepting
Flexibility	Work when you want

Checking Your Payslip

What to Verify

Item	Check
Hours recorded	Match your records?
Base rate	Correct?
OT hours	All recorded?
OT rate	Correct multiplier?
Total gross	Calculation correct?
Tax code	Appropriate?
Deductions	Expected amounts?

Dispute Process

Step	Action
1	Raise with line manager
2	Contact HR/payroll
3	Formal grievance
4	ACAS early conciliation
5	Employment tribunal (if needed)

Summary

Type	Calculation
Standard OT	Hours × Base Rate
Time and a half	Hours × (Base Rate × 1.5)
Double time	Hours × (Base Rate × 2)
Mixed rates	Calculate each tier separately, sum
After tax	Gross OT × (1 - tax% - NI%)

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