Overtime Pay Explained in the UK

What counts as overtime in the UK?

Overtime is any time you work beyond your contracted hours. There is no single UK law that defines overtime rates — what you get paid depends on your employment contract, workplace policy and sometimes industry custom.

Common patterns include time-and-a-half (1.5× your normal hourly rate) for weekday overtime and double time (2×) for Sundays or bank holidays. Some salaried roles offer time off in lieu (TOIL) instead of extra pay.

Your contract should say whether overtime is compulsory or voluntary, and whether it is paid or unpaid. If it is silent, ask HR or check your staff handbook before assuming you will be paid extra.

How to calculate your hourly rate from a salary

To work out overtime pay from an annual salary, convert salary to an hourly rate first. A common method: divide gross annual salary by the number of contracted hours you work per year.

Example: £35,000 salary on a 37.5-hour week with 52 weeks worked ≈ 1,950 hours per year. Hourly rate ≈ £35,000 ÷ 1,950 ≈ £17.95. Time-and-a-half on that rate ≈ £26.93 per overtime hour.

Some employers use 1/195 or 1/260 of monthly salary for hourly equivalents. The correct method should match your employer’s payroll practice — use our overtime calculator to model different scenarios.

Time-and-a-half vs double time

Time-and-a-half means you earn 1.5 times your normal hourly rate for each overtime hour. Double time means 2× your normal rate. If you earn £12/hour normally, time-and-a-half is £18/hour and double time is £24/hour.

Retail, hospitality and healthcare often use higher multipliers for unsocial hours. Office roles may not pay overtime at all for salaried staff but might for hourly workers.

Are employers legally required to pay overtime?

There is no general legal right to enhanced overtime pay in the UK. Employers must pay at least the National Minimum Wage or National Living Wage for every hour worked, including overtime — but they are not required to pay 1.5× unless your contract says so.

If unpaid overtime pushes your average hourly pay below the minimum wage, that is unlawful. Keep records of hours worked if you think this applies.

Overtime and tax

Overtime is taxed like normal pay through PAYE. A large overtime month can push you into a higher tax band temporarily, though cumulative PAYE often smooths this across the year.

Overtime also counts toward National Insurance and may affect student loan repayments if your total pay crosses plan thresholds.

TOIL — time off in lieu

Some employers offer TOIL instead of cash for overtime. You bank hours worked and take paid time off later. Check expiry rules — some TOIL must be used within a set period or it is lost.

TOIL can suit people who prefer flexibility over extra cash, but make sure the arrangement is documented.

Check your payslip

Compare overtime hours logged against hours paid. Look for separate overtime lines or multipliers on your payslip. Query discrepancies promptly — payroll errors are easier to fix in the same tax month.

Calculate your overtime pay

Use our free Overtime Calculator UK: enter your hourly rate (or derive it from salary), overtime hours and multiplier to see overtime earnings and total pay for the period.