Overtime Pay
Calculator 2025/26

There is no legal minimum overtime pay rate in the UK — it depends on your employment contract. However, your average hourly rate including overtime must not fall below the National Living Wage (£12.21/hr for age 21+ from April 2025). Check your contract for your employer's overtime policy.

Overtime is taxed at your marginal income tax rate — the same rate as the rest of your income. It is not taxed at a higher rate. However, if overtime pushes you into the next tax band, the portion above the threshold will be taxed at the higher rate (40% instead of 20%).

Time and a half means you are paid 1.5 times your regular hourly rate for overtime hours. If your standard rate is £20/hour you receive £30/hour for overtime. It is the most common overtime rate in the UK but there is no legal obligation to pay it.

This depends on your pension scheme rules. Many occupational pension schemes calculate contributions on basic salary only and exclude overtime. Auto-enrolment minimum contributions are calculated on qualifying earnings, which can include regular overtime. Check your scheme rules.