Overtime pay is payment for working extra hours beyond normal working hours. In the UK, overtime pay rules and rates usually come from the employment contract, written particulars, workplace policy or agreement.
How overtime pay works
Overtime usually means hours worked beyond the normal hours set in your employment contract. Some employers pay overtime at the normal hourly rate, while others pay a higher multiplier such as time and a half or double time.
Your contract or written employment particulars should explain what counts as overtime, whether overtime is paid, and how the rate is worked out.
overtime pay = hourly rate × overtime hours × overtime multiplier
Common overtime rates
There is no single standard overtime rate that applies to every UK job. The rate depends on the contract, employer policy, collective agreement or workplace practice.
Extra hours paid at the normal hourly rate.
Extra hours paid at 150% of the normal hourly rate.
Extra hours paid at twice the normal hourly rate.
| Example rate | Multiplier | Example at £16/hour |
|---|---|---|
| Plain time | 1.0× | £16/hour |
| Time and a half | 1.5× | £24/hour |
| Double time | 2.0× | £32/hour |
UK overtime pay checks
Employers do not automatically have to pay extra for overtime unless the contract or agreement says so. However, average pay for total hours worked must not fall below the National Minimum Wage.
Working time rules also matter. Workers generally cannot be forced to work more than an average of 48 hours a week unless they have agreed to opt out in writing.
Check your contract: look for wording on compulsory overtime, voluntary overtime, overtime rates, unpaid overtime, time off in lieu and working-time opt-out.
Overtime pay vs time off in lieu
Some workplaces do not pay overtime in cash. Instead, they may offer time off in lieu, often shortened to TOIL. This means you take extra time off later instead of receiving extra pay.
Overtime pay
Extra hours are paid through payroll, usually at the agreed overtime rate.
Time off in lieu
Extra hours are recorded and taken back as paid time off later.
The important point is clarity. Check whether TOIL is hour-for-hour, enhanced, capped, must be approved, or must be used by a certain date.
Overtime pay example
Suppose your hourly rate is £16, you work 6 overtime hours, and the agreed overtime rate is time and a half.
£16 × 6 hours × 1.5 = £144 gross overtime pay.
The amount that reaches your bank account may be lower after PAYE, National Insurance, pension, student loan or other deductions.
Calculate overtime quickly
Enter hourly rate, overtime hours and multiplier to estimate gross overtime pay.
Does overtime affect take-home pay?
Yes. Overtime pay is usually added to gross pay for the pay period. That can increase Income Tax, National Insurance, pension contributions, student loan repayments or other payroll deductions for that payslip.
A high-overtime month can therefore produce a bigger gross payslip and a bigger deduction total. The best way to compare is to look at the net increase, not just the gross overtime amount.
Estimate overtime after deductions
Use the take-home pay calculator to compare normal pay and overtime pay together.
Overtime for salaried workers
Salaried workers can still work overtime, but whether it is paid depends on the employment contract and workplace rules. Some salaries are described as covering all reasonable hours, while others have specific overtime rates.
To assess whether extra hours are worth it, convert annual salary into an hourly rate and compare the extra time required.
Convert salary to hourly rate
Estimate the hourly equivalent of annual salary before comparing overtime.
Why overtime pay matters
Overtime pay matters because extra hours can improve income, but they can also affect tax, work-life balance, hourly value and working-time limits.
- Budgeting: overtime can boost income but may not be guaranteed.
- Tax and NI: deductions can rise in high-overtime pay periods.
- Contract checks: rates and eligibility usually depend on contract wording.
- Working hours: long hours can trigger working-time considerations.
- Job comparison: unpaid overtime can reduce the real hourly value of a salary.
Overtime pay FAQs
What is overtime pay?
Overtime pay is payment for extra hours worked beyond normal working hours.
Is overtime pay legally required in the UK?
There is no automatic right to extra overtime pay unless the contract or agreement says so, but total average pay must not fall below minimum wage rules.
What is time and a half?
Time and a half means overtime is paid at 1.5 times the normal hourly rate.
Does overtime count as taxable pay?
Overtime pay is usually treated as employment income through payroll, so it can increase tax and other deductions for that pay period.