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How We Calculate Overtime Pay
Enter hourly pay
Start with the employee’s regular hourly rate.
Apply the overtime rate
We multiply the hourly rate by the overtime multiplier to get the overtime wage.
Add overtime hours
We multiply the overtime wage by the extra hours worked that month.
Calculate total pay
Finally, we add overtime pay to the employee’s monthly salary.
Calculate employee overtime in seconds
Enter your employees’ hourly wage into our overtime calculator below and we’ll work out exactly how much overtime pay is owed this month.
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How does overtime pay work?
Overtime is any time worked beyond the hours set out in an employee’s contract, and overtime pay is the extra amount paid for those additional hours.
Our overtime pay calculator helps you work out hourly overtime wage, total overtime pay, and total salary using an employee’s hourly rate, overtime multiplier, hours worked, and regular monthly pay.
This makes it easier to check calculations quickly, understand how overtime is being paid, and keep pay decisions consistent across your team.
How overtime pay is calculated
First, the calculator works out the employee’s hourly overtime wage by multiplying regular hourly pay by the overtime rate.
It then multiplies that figure by the number of overtime hours worked to show total overtime pay for the month.
How total pay is worked out
Once overtime pay has been calculated, it is added to the employee’s regular monthly salary to show total pay.
This gives you a clear breakdown of the employee’s overtime wage, overtime earnings, and full monthly pay in one place.
The calculator formula
The calculator follows three simple steps:
OP = HOP × n
TP = OP + RP
This works out hourly overtime pay, total overtime pay, and total salary including overtime.
What should employers know?
Overtime arrangements depend on contracts, working patterns, and how your business chooses to reward extra hours.
Overtime is not automatically paid
In the UK, there is no automatic legal right to paid overtime unless it is set out in the employment contract.
Minimum wage still applies
Overtime must not reduce a worker’s average pay below the National Minimum Wage.
TOIL may be an option
Instead of extra pay, some employers agree time off in lieu, provided this is clearly agreed in advance.
Different types of overtime
Overtime can be compulsory, non-guaranteed, or voluntary depending on what is written in the employment contract.
Employers should make clear which hours count as overtime, whether employees must work them, and what rate or time-back arrangement applies.
What is time-and-a-half?
Time-and-a-half means an employee is paid 1.5 times their normal hourly rate for each overtime hour worked.
It is one of the most common overtime premiums, although employers can choose another rate as long as pay still meets legal minimum wage requirements.
Calculate overtime pay in minutes
Use the calculator to work out hourly overtime wage, total overtime pay, and total monthly salary quickly and clearly.
Calculate overtime pay