Overtime pay calculator
What overtime adds to your pay at time and a half, double time or any multiplier — and what it looks like after tax, which is where the surprise usually is.
What is the overtime worth?
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| Overtime pay (gross) | — |
|---|---|
| Effective hourly rate | — |
| Kept after tax and NI | — |
| Taken in tax and NI | — |
| Your marginal rate | — |
Is overtime taxed more?
No — and yes, in the way that matters. There is no special overtime tax rate. But overtime sits on top of your existing income, so every pound of it is taxed at your marginal rate: the rate on your next pound, not the average across your whole salary. Someone whose salary is comfortably inside the basic rate band keeps 68p of each overtime pound after 20% tax and 8% National Insurance. Someone whose overtime pushes them past £50,270 keeps 58p on the part above it.
This is why a shift that looked like £180 arrives as £122 and feels like a mistake. It is not.
The 60% band
Between £100,000 and £125,140 the personal allowance is withdrawn at £1 for every £2 earned, which makes the effective marginal rate about 60%. Overtime in that range is worth 40p in the pound. Diverting it into a pension by salary sacrifice is the usual response, because the sacrificed amount escapes both the tax and the allowance withdrawal.
Your legal position
There is no statutory right to enhanced overtime pay in the UK. Time and a half and double time are contractual conventions, not law. What the law does require is that your average pay across all hours worked does not fall below the National Minimum Wage, and that you are not required to work beyond 48 hours a week averaged over 17 weeks unless you have opted out in writing.
Common questions
Is overtime taxed at a higher rate?
There is no separate overtime tax. Overtime is taxed at your marginal rate — the rate applying to your next pound of income — which is usually higher than the average rate across your whole salary. That is why it feels more heavily taxed.
What is time and a half?
1.5 times your normal hourly rate. On £18 an hour it is £27. It is a contractual convention rather than a legal entitlement in the UK.
Do I have a legal right to overtime pay?
No. UK law does not require enhanced rates for extra hours. It does require that your average pay does not fall below the National Minimum Wage, and limits the working week to 48 hours averaged over 17 weeks unless you opt out in writing.
Why did my overtime seem to disappear in tax?
Because it is stacked on top of your salary and taxed at the marginal rate. If it crosses £50,270 the part above is taxed at 40% plus 2% National Insurance, so you keep 58p in the pound rather than 68p.
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