How overtime pay is worked out
Overtime pay is just your basic hourly rate multiplied up. Time and a half pays 1.5 times your normal rate, double time pays twice it, and some contracts add other multipliers such as 1.25 for weekday evenings. The calculator takes your basic rate, applies each multiplier to the hours worked at that rate, and adds the bands together:
Everything shown is gross, before income tax and National Insurance come off. Overtime is taxed exactly like ordinary pay, so a heavy overtime month simply means more pay going through the same bands. Leave any band you did not work blank, and if your contract uses a different multiplier, such as 1.25 for evenings, you can approximate it by adjusting the hours or running the band separately.
Worked examples
There is no legal right to overtime rates
It surprises many people, but UK law does not require employers to pay a premium for overtime, or to pay for overtime at all beyond what the contract promises. Time and a half and double time are contractual customs, common in retail, logistics, manufacturing and healthcare, not statutory rights. Two legal floors do apply. First, your average pay across all the hours you actually work in a pay reference period must not drop below the National Minimum Wage, which matters if you work unpaid or low-paid extra hours. Second, you cannot be required to average more than 48 hours a week over 17 weeks unless you have signed an opt-out. Beyond that, your contract is the rulebook: check it for whether overtime is paid, at what rate, and whether it needs prior approval. The overview of your rights is at gov.uk/overtime-your-rights.
Overtime, holiday pay and time off in lieu
If you work overtime regularly, it may need to feed into your holiday pay: pay for at least four weeks of statutory holiday must reflect normal remuneration, which includes overtime worked consistently enough to be part of your usual earnings. Some employers offer time off in lieu (TOIL) instead of overtime pay, an hour off later for an extra hour worked; that is also a contractual arrangement, so agree the terms before working the hours. If the numbers on your payslip do not match what this calculator and your contract suggest, raise it with payroll first and keep your own record of hours. This page is guidance, not legal advice; for disputes, Acas and gov.uk set out the formal routes.
Frequently asked questions
Am I legally entitled to time and a half for overtime?
No. UK law gives no right to a premium rate for overtime, or to any overtime pay at all beyond what your contract says. The only legal floor is that your average pay for the total hours you work in a pay reference period must not fall below the National Minimum Wage. Time and a half and double time exist only where a contract or collective agreement grants them.
What do time and a half and double time actually mean?
They are multipliers on your basic hourly rate. Time and a half pays 1.5 times your normal rate, so £12.50 an hour becomes £18.75. Double time pays twice the rate, £25.00 in that example. Contracts typically reserve the higher multipliers for nights, weekends or bank holidays, but the details are whatever your contract says.
Can my employer make me work overtime?
Only if your contract allows it, and even then your average working time cannot exceed 48 hours a week over a 17-week reference period unless you have voluntarily opted out in writing. Equally, an employer does not have to offer overtime, and can usually withdraw voluntary overtime when it chooses.
Does overtime count towards holiday pay?
Often, yes. If overtime is regular enough to count as part of your normal pay, case law says it must be reflected in at least the 4 weeks of holiday derived from EU rules, and since 2024 the rules on what counts as normal remuneration are written into UK regulations. One-off, genuinely voluntary overtime may not count. Check how your employer calculates holiday pay if you work overtime most weeks.
Is overtime taxed more than normal pay?
No, there is no special overtime tax rate. Overtime is added to your other pay and taxed under the same income tax bands and National Insurance rates. A month with a lot of overtime can be deducted more heavily through PAYE because that month's pay is higher, and a big overtime month can push some pay into a higher band, but the annual treatment is identical to ordinary wages.