Overtime Pay Guide

UK Overtime Law

There is no statutory right to overtime pay in the UK — it is down to your employment contract. However, if overtime hours bring your average hourly pay below the National Living Wage (£11.44/hr from April 2024), that is illegal. Many employers offer time and a half (1.5×) for overtime as a contractual term. Some offer double time for bank holidays or Sundays. Working Time Regulations limit the average working week to 48 hours over 17 weeks, but workers can opt out individually. Zero-hours contr

Calculating Overtime Pay

Standard overtime calculation: Regular pay = hourly rate × regular hours. Overtime pay = hourly rate × overtime multiplier × overtime hours. Total = regular + overtime. Example: £15/hr, 37.5 regular hours, 5 overtime hours at time and a half: Regular = £15 × 37.5 = £562.50. Overtime = £15 × 1.5 × 5 = £112.50. Total = £675. The effective earnings for the week increase not just from the overtime hours but from the premium rate applied to them.

Is Overtime Worth It?

For basic rate taxpayers (under £50,270 total income), overtime earnings are taxed at 20% income tax + 10% NI = 30% deduction on overtime pay. For higher rate taxpayers, overtime above the threshold is taxed at 40% + 2% NI = 42%. Working more hours may also incur childcare costs, commuting costs, and reduce time for rest and recovery. The financial value of overtime depends heavily on your marginal tax rate and personal circumstances. For shift workers, LIFO shift patterns (last in, first out) o

Night Shifts and Weekend Premium Pay

Many employers pay premiums beyond statutory requirements for unsociable hours: nights (midnight–6am) often attract 15–30% premium, weekends 10–25%, bank holidays 50–100% (double time is common). NHS and emergency services have nationally negotiated unsocial hours allowances. Check your contract or collective bargaining agreement for specific rates. Night workers are legally limited to an average of 8 hours per 24-hour period and are entitled to free health assessments.

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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