🇬🇧 United Kingdom

Overtime Calculator UK 2025/26

Calculate your overtime take-home pay after tax, National Insurance, and pension. Check if overtime pushes you into a higher tax band or the £100K PA trap. Project your annual overtime earnings and see your effective hourly rate after deductions.

£
Your gross annual salary before overtime
hrs
Overtime hours you work per week
Check your contract for your overtime rate
Show results per week or per month
hrs
Your contracted weekly hours (default 37.5)
Find on your payslip (default 1257L)
Find on your payslip. Most employees are category A.
%
Employee pension rate (auto-enrolment minimum 5%)

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How to Use This Calculator

Overtime Pay tab

Enter your annual base salary, the number of overtime hours per week, and your overtime rate multiplier (1.0×, 1.25×, 1.5×, or 2.0×). Select weekly or monthly pay frequency to see your gross overtime, income tax at your marginal rate, National Insurance, pension deduction, and net overtime pay. You see exactly what lands in your bank account.

Tax Impact tab

Enter your base salary and overtime hours to see whether overtime pushes you into a higher tax band. The calculator shows your marginal tax rate on base salary versus overtime, warns if you cross the £50,270 higher rate threshold or the £100,000 Personal Allowance taper, and calculates the extra tax cost.

Annual Projection tab

Enter your regular weekly overtime hours to see the full-year projection. The calculator compares your take-home pay with and without overtime, showing total tax, NI, pension, annual take-home, and your effective hourly rate after all deductions — the real value of each overtime hour.

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The Formula

Overtime pay in the UK is calculated from your base hourly rate derived from your annual salary:

Hourly Rate = Annual Salary ÷ 52 weeks ÷ Contractual Hours per Week

Overtime Hourly Rate = Hourly Rate × Overtime Multiplier

Gross Overtime = Overtime Hours × Overtime Hourly Rate

Tax on Overtime = (Gross Overtime − Pension) × Marginal Tax Rate
NI on Overtime = Gross Overtime × Marginal NI Rate
Pension on Overtime = Gross Overtime × Pension Rate

Net Overtime = Gross Overtime − Tax − NI − Pension

Your marginal tax rate depends on which band your total income falls into. If your salary is £30,000, overtime is taxed at 20% (basic rate) and 8% NI. If your salary is £48,000 and overtime pushes you past £50,270, the portion above the threshold is taxed at 40%.

National Insurance: 8% on earnings between £12,570 and £50,270, 2% on earnings above £50,270. Category C (over state pension age) pays 0% NI.

The £100,000 PA taper: for every £2 earned above £100,000, you lose £1 of Personal Allowance, creating an effective marginal rate of approximately 60%.

Example

James — warehouse supervisor on £30,000, works 5 hours overtime per week at 1.5×

James earns £30,000 per year on a 37.5-hour week. His contract pays overtime at time and a half (1.5×). He has a 5% pension.

Calculating the hourly rate

Annual salary£30,000
Weekly hours37.5
Hourly rate£15.38/hr
Overtime rate (1.5×)£23.08/hr

Weekly overtime

Overtime hours5 hrs/wk
Gross overtime£115.38/wk
Income tax (20%)−£21.92
National Insurance (8%)−£9.23
Pension (5%)−£5.77
Net overtime pay£78.46/wk

James takes home approximately £78 per week from 5 hours of overtime. His effective net rate is £15.69/hr — still above his base rate but noticeably less than the £23.08 gross overtime rate.

Sarah — £48,000 salary, overtime pushes into higher rate band

Sarah earns £48,000 and regularly works 5 hours of overtime at 1.5× per week. This projects to £54,813 annually — crossing the £50,270 higher rate threshold.

Annual overtime gross£6,813
Total projected income£54,813
Amount in higher rate band£4,543
Marginal rate on that portion40% tax + 2% NI = 42%

£4,543 of Sarah's overtime is taxed at 42% combined (40% income tax + 2% NI above £50,270) instead of 28% (20% + 8%). She should use the Tax Impact tab to see the exact cost before accepting overtime shifts.

FAQ

No. There is no statutory right to overtime pay in the UK. Overtime rates are entirely contractual — they depend on what is in your employment contract or workplace agreement. Your employer is not legally required to pay any premium for overtime hours. However, your average hourly pay (including overtime) must not fall below the National Minimum Wage. Common contractual rates are 1× (standard), 1.25× (time and a quarter), 1.5× (time and a half), and 2× (double time). Source: Acas.
Overtime pay is taxed as normal earnings through PAYE. It is added to your salary and taxed at your marginal rate. If your salary is within the basic rate band (up to £50,270), overtime is taxed at 20%. If overtime pushes your total income above £50,270, the portion above the threshold is taxed at 40% (higher rate). National Insurance is also deducted: 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Pension contributions (if applicable) reduce your taxable income.
Yes. If your base salary is close to a tax band threshold (e.g. £50,270 for the basic/higher rate boundary or £100,000 for the Personal Allowance taper), overtime earnings can push your total income into the next band. However, only the amount above the threshold is taxed at the higher rate — your existing salary is not affected. The £100,000 threshold is especially costly: for every £2 earned above it, you lose £1 of Personal Allowance, creating an effective ~60% marginal rate. Use the Tax Impact tab to check.
Under the Working Time Regulations 1998, you cannot work more than 48 hours per week on average, calculated over a 17-week reference period. This includes overtime. You can opt out by signing a written agreement with your employer. You can opt back in at any time with at least 7 days' notice (or up to 3 months if stated in your contract). Workers under 18 cannot work more than 40 hours per week. Source: GOV.UK.
Even if your base salary is above the National Minimum Wage, working overtime at a lower rate (e.g. 1× or unpaid) can bring your average hourly pay below the legal minimum. Your employer must ensure your total pay divided by total hours (including overtime) does not fall below the NMW rate for your age group. For workers aged 21 and over in 2025/26, the NMW is £11.44/hr. This calculator checks this automatically and warns you if your average drops below the threshold.

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