Most UK workers expect overtime to be paid at time and a half. Some discover their contract says straight time. Others find their employer doesn't pay overtime at all — which may be completely legal. The UK has no statutory minimum overtime rate, which surprises a lot of people. Here's what the law actually says, how to calculate your overtime pay, and how it's taxed.
Does UK Law Require Overtime Pay?
Whilst the government doesn't mandate a multiplier, there are several legal protections that prevent employers from exploiting additional hours:
- National Living Wage: The NLW applies to all hours worked, including overtime. In 2026, the NLW is £12.21/hour for workers aged 21+. If your overtime brings your average hourly rate below this floor for the pay period, your employer is breaking the law regardless of your contract.
- 48-Hour Limit: The Working Time Regulations 1998 limit average working time to 48 hours per week. Whilst you can voluntarily opt out of this in writing — and many professional contracts include this by default — you cannot be forced to sign it.
In practice, what you'll find in most contracts is "time and a half" (1.5× hourly rate), particularly in trade and manufacturing roles. Some sectors offers double time for weekends or bank holidays. Many professional or salaried roles pay "straight time" (your normal hourly rate) or offer Time Off In Lieu (TOIL). Always check your contract first, and if it's not clear, recognise that a written query to HR is your best starting point.
How to Calculate UK Overtime Pay
Working out your extra earnings is straightforward once you have your base rate. Follow these steps to ensure your payslip is correct:
Step 1 — Calculate your regular hourly rate:
Annual salary ÷ 1,950 (standard 37.5-hour week × 52 weeks)
Step 2 — Apply the overtime multiplier from your contract:
Time and a half: rate × 1.5
Double time: rate × 2
Straight time: rate × 1
Step 3 — Multiply by overtime hours worked:
Overtime rate × number of extra hours
Worked Example: £35,000 salary, 10 hours overtime at time and a half
- Regular hourly rate: £35,000 ÷ 1,950 = £17.95/hour
- Time and a half rate: £17.95 × 1.5 = £26.92/hour
- Gross overtime pay: 10 × £26.92 = £269.20
- After income tax (20%) and NI (8%), net overtime take-home: £193.82
UK Overtime Pay Calculator
Our overtime pay calculator UK converts your annual salary to an hourly rate automatically. Simply enter your gross salary and select your contract hours per week to see your exact hourly rate. From there, you can easily find your time and a half (1.5×) or double time (2×) figure. For a complete picture of your monthly earnings after deductions, see our detailed UK take-home pay after tax guide.
Overtime Pay Reference Table — UK Salaries
Time and a half rate and estimated net take-home per overtime hour for basic rate taxpayers (income tax 20% + NI 8%). Higher rate taxpayers — see note below.
| Salary | Hourly Rate | Time & Half Rate | Net per OT Hour |
|---|---|---|---|
| £25,000 | £12.82 | £19.23 | £13.84 |
| £30,000 | £15.38 | £23.08 | £16.61 |
| £35,000 | £17.95 | £26.92 | £19.38 |
| £40,000 | £20.51 | £30.77 | £22.15 |
| £45,000 | £23.08 | £34.62 | £24.92 |
| £50,000 | £25.64 | £38.46 | £27.69 |
Higher rate taxpayers — those with total annual earnings above £50,270 — pay 40% income tax plus 2% National Insurance on overtime, a combined 42% deduction. In the £269.20 gross overtime example above, that leaves a net take-home of £156.14. If your total income for the year is close to the threshold, it is worth checking whether a few months of heavy overtime will push you into the higher tax bracket.
How Is Overtime Taxed in the UK?
The most important thing for your budget is to recognise that overtime is not taxed at a special higher rate. It is added to your regular earnings for the pay period and your total income is taxed normally through PAYE — the same rates that apply to every pound you earn from your salary.
Let's compare the net results for £269.20 in overtime:
Basic Rate (under £50k)
Gross: £269.20
Tax (20%): £53.84
NI (8%): £21.54
Net: £193.82 (72%)
Higher Rate (over £50k)
Gross: £269.20
Tax (40%): £107.68
NI (2%): £5.38
Net: £156.14 (58%)
A common concern is why overtime can feel more heavily taxed. If your extra hours push your total monthly earnings into a higher tax band for that specific period, the payroll software may deduct tax at the higher rate for that month. You're not actually being punished for working hard; the system simply assume your new monthly payout is your normal salary. HMRC reconciles this automatically across the tax year to ensure you pay the correct total.
Holiday Pay and Regular Overtime — Your Legal Rights
The holiday pay ruling catches a lot of employers out — even those who are generally good at following employment law. In 2021, the Supreme Court (Harpur Trust v Brazel) confirmed that workers are entitled to have regular overtime included in their holiday pay calculations.
This applies to:
- Guaranteed overtime: Hours your employer can compel you to work.
- Regular voluntary overtime: Hours you regularly work even if not compulsory.
Your holiday pay should reflect your average weekly earnings over the 52 weeks before you take leave. If you've been working an extra 5 hours most weeks for 6 months, those hours must be included in your holiday pay rate. If your employer isn't doing this, recognise your right to raise it with HR or contact ACAS for free conciliation services.
If you need to convert your annual salary up to an hourly rate to verify your holiday pay or check your overtime multiplier, the standard calculation remains annual salary ÷ 1,950 for a typical 37.5-hour week. Knowing these numbers keeps your employer accountable.
What If My Employer Does Not Pay Overtime?
If you're working additional hours and not seeing an increase in your payslip, you should first check your employment contract. Many salaried roles include a "you may be required to work reasonable additional hours" clause with no overtime premium. This is perfectly legal as long as your total pay divided by total hours doesn't fall below the National Living Wage (£12.21/hour in 2026).
If you suspect your effective hourly rate has fallen below the NLW floor, you should raise this informally with your manager or HR first. A simple email often resolves genuine misunderstandings. If the issue persists, the ACAS early conciliation service is a free, confidential way to resolve the dispute before it becomes a formal claim or reaches an employment tribunal.
Recognise that an employment tribunal is a last resort. Most wage claims are settled through ACAS, provided you have clear records of the hours you've worked and your contract's original terms. Stay professional, keep records, and know the law is there to protect your minimum earning capacity.
Frequently Asked Questions
Is overtime compulsory in the UK?
Whether overtime is compulsory depends on your employment contract. Some contracts include a clause requiring you to work "reasonable additional hours" when the business needs it. Others make overtime entirely voluntary. Your employer cannot force you to work more than 48 hours a week on average unless you have signed a written opt-out agreement under the Working Time Regulations 1998.
What is the overtime pay rate in the UK?
There is no statutory overtime rate in the UK — the rate is set by your employment contract. The most common arrangement is time and a half (1.5× your regular hourly rate), often with double time for weekend or bank holiday work. Some professional roles pay no overtime premium at all. Check your contract or company handbook to find out what applies to you.
How is overtime taxed in the UK?
Overtime is taxed as ordinary income through PAYE — there's no special "overtime tax rate." It's added to your regular pay for the period and your combined earnings are taxed at your marginal rate. Basic rate taxpayers pay 20% income tax plus 8% NI (28% combined). Higher rate taxpayers pay 40% income tax plus 2% NI (42% combined) on earnings above £50,270.
Can my employer make me work overtime without extra pay?
Yes, if your contract doesn't include an overtime pay clause. Many salaried roles include a "you may be required to work reasonable additional hours" provision with no overtime premium — this is legal as long as your total pay divided by total hours doesn't fall below the National Living Wage (£12.21/hour in 2026). If it does fall below NLW, your employer is breaking minimum wage law regardless of what your contract says.
How do I calculate time and a half in the UK?
First find your regular hourly rate: divide your annual salary by 1,950 (for a standard 37.5-hour week). Then multiply by 1.5 to get your time and a half rate. For a £35,000 salary: £35,000 ÷ 1,950 = £17.95/hour regular rate. Time and a half: £17.95 × 1.5 = £26.92/hour. Ten overtime hours would give £269.20 gross — around £193.82 after income tax and NI for a basic rate taxpayer. Our salary to hourly calculator does step one for you instantly.
Does overtime count towards holiday pay in the UK?
Yes — regular overtime must be included in holiday pay calculations. Following Supreme Court case law confirmed in 2021, both guaranteed overtime and regularly worked voluntary overtime count. Your holiday pay should reflect your average weekly earnings over the 52 weeks before you take leave, including any weeks where you worked overtime. If your employer is excluding regular overtime from your holiday pay, raise it with ACAS.
What is the maximum hours I can work per week in the UK?
The Working Time Regulations 1998 limit average working time to 48 hours per week, averaged over a 17-week reference period. Workers aged 18 and over can sign a written opt-out agreement waiving this limit — many professional contracts include this automatically. You can cancel a signed opt-out with at least 7 days' notice (or longer if your contract specifies). Workers under 18 cannot opt out and are limited to 8 hours a day and 40 hours a week.
Understanding your overtime rights in the UK comes down to one document: your employment contract. The law sets a floor — National Living Wage for every hour worked — but everything above that floor is down to what you agreed when you started the job. If you want to verify what your employer should be paying you per hour, or check what time and a half actually comes to on your salary, our salary to hourly calculator does the maths in seconds. For a full picture of your monthly take-home including tax and National Insurance, the rest of the Cashluom blog has you covered. Knowing your value is the first step to financial dignity.
Sources & Citations: Content verified against official guidelines from the IRS (US), HMRC (UK), and ATO (AU). Information is reviewed for accuracy prior to publication.
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