Enter your hourly rate, regular and overtime hours, and the overtime multiplier (time-and-a-half = 1.5×, double time = 2×, or a custom rate). The calculator shows your gross overtime pay and estimates the tax deducted at your marginal rate.
Regular pay = hourly rate × regular hours. Overtime pay = hourly rate × overtime multiplier × overtime hours. Total gross is the sum. All figures are gross (before tax and NI). There is no legal minimum overtime rate in the UK; the only requirement is that average pay across all hours does not fall below the National Minimum Wage.
Tax estimate: Overtime is subject to income tax and NI at your marginal rate. The marginal rate depends on your annual salary. For most basic-rate taxpayers (income below £50,270), overtime is taxed at 20% income tax + 8% NI = 28%. For higher-rate taxpayers (income above £50,270), the marginal rate is 40% tax + 2% NI = 42%. Enter your annual salary in the tax context field for a more accurate estimate.
Important: PAYE calculates deductions on a cumulative year-to-date basis. A one-off overtime payment may appear more heavily taxed in the month received, but this is corrected across subsequent months. Your annual total deductions will be correct.
Frequently Asked Questions
No — overtime is taxed at the same marginal income tax rate as your regular pay. If your total income stays within the basic rate band (£12,571–£50,270), overtime is taxed at 20% plus 8% NI. If overtime pushes you into the higher rate band, only the portion above £50,270 is taxed at 40%. PAYE employees may see higher deductions in the month overtime is paid, but this is corrected over the tax year. See our PAYE guide for how the cumulative system works.
There is no legal minimum overtime rate in the UK. Employers must only ensure that pay averaged across all hours worked does not fall below the National Living Wage (£12.21/hour in 2026/27 for workers aged 21+). Time-and-a-half (1.5×) is common practice but not a legal requirement. Always check your employment contract, which should specify your overtime arrangements.
Yes — if your regular salary is below £50,270 but overtime pushes your total income above this threshold, the earnings above £50,270 are taxed at 40% (higher rate) rather than 20% (basic rate). However, only the portion above the threshold is affected — not your whole salary. You can reduce the impact by making additional pension contributions from the overtime payment. See our income tax guide for worked examples.
This depends on your employer's pension scheme rules. Most workplace pension schemes use "qualifying earnings" as defined by The Pensions Regulator — this includes overtime, bonuses and commission on top of basic salary, on earnings between £6,240 and £50,270 per year. Some schemes use basic salary only. Check your scheme documentation or contact your HR or payroll team.
Overtime is typically listed as a separate earnings line on your payslip, showing the number of hours and the rate paid. Your total gross pay (regular + overtime) is then subject to PAYE income tax and NI. Some payslips show total deductions as a single figure; others itemise tax and NI separately. See our PAYE Explained guide for a full payslip walkthrough.
Under the Working Time Regulations 1998, most workers cannot be required to average more than 48 hours per week over a 17-week reference period. You can voluntarily opt out by signing a written opt-out agreement. Specific sector rules apply: HGV drivers have stricter limits, junior doctors are capped at 48 hours, and workers under 18 cannot work more than 8 hours per day or 40 hours per week.