UK Overtime Calculator 2025/26
Calculate your overtime pay and see how much tax you'll pay on overtime hours
Understanding Overtime Pay in the UK
Overtime pay is additional compensation for hours worked beyond your standard working week. Understanding how overtime is calculated and taxed can help you plan your finances better.
Overtime Pay Rates
Overtime rates vary by employer and employment contract. Common overtime rates include:
- Time and a half (1.5x): Your regular hourly rate multiplied by 1.5
- Double time (2x): Your regular hourly rate multiplied by 2
- Flat rate: Overtime paid at your regular hourly rate
Tax on Overtime
Overtime is subject to the same tax and National Insurance deductions as your regular pay. It's added to your gross income for the pay period, which means:
- Overtime earnings are taxed at your marginal tax rate
- National Insurance contributions apply to overtime earnings
- Higher overtime earnings could push you into a higher tax bracket for that pay period
Planning for Overtime
If you regularly work overtime, it's important to understand the tax implications. Use our Salary Calculator to see how additional earnings affect your take-home pay.
Frequently Asked Questions
How is overtime pay calculated?
Overtime pay is calculated by multiplying your regular hourly rate by the overtime rate (usually 1.5x or 2x) and then multiplying by the number of overtime hours worked. The exact rate depends on your employment contract.
Is overtime taxed differently?
No, overtime is taxed at the same rates as your regular pay. However, because it increases your total income for the pay period, it may push you into a higher tax bracket temporarily, which could result in a higher tax deduction on that particular payslip.
Does overtime count towards my annual salary for tax purposes?
Yes, overtime earnings are included in your total annual income for tax calculations. They contribute to your overall tax liability for the tax year.
What is the legal minimum for overtime pay in the UK?
There is no legal minimum overtime rate in the UK. However, your average pay (including overtime) must not fall below the National Minimum Wage for your age group. Your employment contract should specify your overtime rates.
Can I work unlimited overtime?
Working Time Regulations limit most workers to an average of 48 hours per week, unless you've opted out. However, some sectors have exceptions. Check your employment contract and speak with your employer about overtime limits.
How does overtime affect my pension contributions?
If your pension contributions are calculated as a percentage of your gross pay, overtime earnings will increase both your pension contributions and your employer's contributions (if applicable).
Will overtime affect my student loan repayments?
Yes, overtime increases your gross pay, which means more of your income may be subject to student loan repayments (9% of earnings above the threshold for your plan).
Why does my payslip show different tax amounts when I work overtime?
When you work overtime, your gross pay increases. Your employer's payroll system may calculate tax based on that higher amount, potentially using a higher tax rate. This is usually corrected over the tax year or through a tax refund if you've overpaid.
Should I work overtime to increase my take-home pay?
This depends on your personal circumstances. While overtime increases your gross pay, remember that you'll pay more tax and NI. The marginal benefit decreases as you move into higher tax brackets. Consider your work-life balance and whether the additional take-home pay is worth the extra hours.
How can I calculate my overtime take-home pay?
Use our Salary Calculator to estimate your take-home pay. Enter your annual salary including estimated overtime, and the calculator will show you your net pay after all deductions. For detailed overtime calculations, this calculator will be available soon.