Is overtime taxed at a higher rate?

Overtime is taxed as normal income. It is added to your base pay, so if it pushes you into a higher tax bracket, the overtime in that bracket is taxed at the higher rate. This is why take-home from overtime can feel lower than expected.

What does time and a half mean?

Time and a half (1.5x) means you are paid 150% of your normal hourly rate for each hour of overtime. If your base rate is £15/hour, time and a half pays £22.50/hour.

Do employers have to pay overtime in the UK?

There is no legal requirement to pay overtime in the UK, but your overall pay must not fall below the National Minimum Wage for all hours worked. Overtime terms should be set out in your employment contract.

Overtime Calculator

Enter your base rate, overtime hours, and multiplier to see your gross overtime pay — and optionally estimate the tax and NI on your extra earnings.

What this calculator does

This calculator works out your overtime pay based on your base rate, the number of overtime hours, and the overtime multiplier. It can also estimate the income tax and National Insurance on your overtime earnings.

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