Overtime Pay Calculator
Our overtime pay calculator works out your gross and net earnings when you work hours beyond your standard contract. Enter your regular hourly rate, your overtime rate (commonly 1.5x or 2x), and the number of overtime hours to see your total earnings and take-home pay after income tax and National Insurance for 2026/27.
Overtime Pay Calculator
Calculate your overtime take-home pay after tax for 2026/27.
How Overtime Pay Is Taxed in the UK
Overtime is not taxed at a special rate — it is added to your regular pay for the month and taxed through PAYE at your marginal rate. If your combined regular and overtime earnings push you into the higher rate band for that month, your employer may withhold 40% on the excess. However, your annual tax position is recalculated at year-end, so any over-deduction is refunded through PAYE adjustments or self-assessment.
On a salary of £28,000 working 10 hours of overtime at time-and-a-half (£20/hr standard, £30/hr overtime), your monthly gross increases by £300. After income tax (20%) and NI (8%), your net overtime pay is approximately £216 — meaning you keep roughly 72p of every pound earned in overtime.
Regular Pay vs Overtime: What Counts?
For most employees, overtime only applies to hours worked above the contracted weekly hours. Your contract should specify the standard hours, the overtime threshold, and the rate payable. Some contracts include a guaranteed hours clause that requires overtime payment above 37.5 or 40 hours per week. Others operate on an all-hours contract with no additional overtime rate. Always check your employment contract before assuming any overtime entitlement.
Self-employed workers and sole traders do not receive overtime — all hours are simply chargeable at their day or hourly rate. Freelancers should factor in self-employed National Insurance (6% on profits above £12,570) when calculating net overtime earnings.
Frequently Asked Questions
No — UK law does not require employers to pay a premium rate for overtime. The only legal requirement is that your total pay for all hours worked, including overtime, does not fall below the National Living Wage (£12.71/hr for workers aged 21+). Any premium such as time-and-a-half is a contractual right, not a statutory one.
It depends on your pension scheme rules. Many auto-enrolment pensions calculate contributions on qualifying earnings, which may or may not include overtime. Check your pension scheme rules or ask your payroll department. If contributions are based on total pay, overtime will increase both your contribution and your employer’s contribution.
Overtime increases your total annual earnings, which can move you from the basic (20%) to higher (40%) rate band if your income exceeds £50,270. Only the portion above this threshold is taxed at 40% — not your entire income. Use our Take-Home Pay Calculator to model any salary level with overtime included.
Part-time workers are entitled to the same overtime premium as full-time workers, but the threshold at which overtime begins is typically their contracted hours — not the standard full-time hours. A part-time worker contracted for 20 hours per week would earn overtime for hours above 20, not above 37.5.
Some employers offer time off in lieu instead of overtime pay — you bank extra hours worked and take equivalent paid leave later. TOIL arrangements are contractual, not statutory. The tax implications are the same as overtime pay when paid in cash. Our Income Tax Calculator shows the annual tax impact of any increase in earnings.
Enter your basic weekly pay and the overtime amount or rate. Overtime is taxed as income in the pay period received — it is added to your regular pay and PAYE applies to the combined figure. Workers earning near a band boundary may find overtime taxed at 40% even if their regular salary is at 20%, because the monthly combined figure pushes them into the higher band temporarily. Your annual position is still corrected by cumulative PAYE, so you do not overpay overall if you have consistent overtime — but the monthly payslip can show a surprisingly high deduction. The calculator shows take-home on a regular week versus an overtime week, and the net value of each extra hour worked after tax and NI.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.