Overtime Calculator: Gross Overtime Pay, Effective Rate | Quantim
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Overtime Calculator: Gross Overtime Pay and Effective Hourly Rate

40 contracted hours at £25.00/hr plus 8 overtime hours at 1.5× is £1,300.00 gross, giving an effective rate of £27.08/hr.

Enter your hourly rate, contracted weekly hours, overtime hours and the overtime multiplier your contract uses. You get your regular pay, overtime pay, total gross pay and effective hourly rate, with an annual projection if the pattern repeats. Optionally add a second block of enhanced hours at a different rate for bank holidays or weekend work.

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Your Overtime

Work out your overtime pay

40 contracted hours at £25.00/hr plus 8 overtime hours at 1.5× is £1,300.00 gross, giving an effective rate of £27.08/hr.

Enhanced hours (optional)

If part of your week is paid at a different premium, for example bank holidays at double time while the rest of your overtime is time and a half, add those hours here.

💰 Your pay
£1,300.00
Total gross pay this week
Regular pay£1,000.00
Overtime pay (1.5×)£300.00
Enhanced pay (2×)£0.00
Total hours worked48
Effective hourly rate£27.08
Overtime premium earned£100.00
Based on the figures above

Annual projection (45 weeks)

Regular pay a year
£45,000.00
Overtime pay a year
£13,500.00
Enhanced pay a year
£0.00
Total gross a year
£58,500.00
OT hours a year
360
Workings

How this is worked out

The workings below update as you change the inputs above.

  • Hourly rate: £25.00
  • Contracted hours: 40
  • Regular pay: 40 × £25.00 = £1,000.00
  • Overtime multiplier: 1.5×
  • Overtime hourly rate: £25.00 × 1.5 = £37.50
  • Overtime pay: 8 × £37.50 = £300.00
  • Enhanced multiplier: 2×
  • Enhanced hourly rate: £25.00 × 2 = £50.00
  • Enhanced pay: 0 × £50.00 = £0.00
  • Total gross pay: £1,000.00 + £300.00 = £1,300.00
  • Total hours worked: 40 + 8 = 48
  • Effective hourly rate: £1,300.00 ÷ 48 = £27.08
  • Overtime premium: the £300.00 overtime pay less what those 8 hours would have earned at the flat rate (£200.00) = £100.00. This is the extra amount earned purely because of the multiplier.
  • Annual projection: 45 working weeks at £1,000.00 regular + £300.00 overtime = £58,500.00 gross a year, with 360 overtime hours.
Reference

Common overtime rates at a glance

These tables show gross overtime pay for some common hourly rates and overtime blocks. All figures are gross, before any deductions for tax or National Insurance.

Overtime at time and a half (1.5×)

Hourly rateOT rate (1.5×)4 hrs OT8 hrs OT12 hrs OT
£10.00£15.00£60.00£120.00£180.00
£12.00£18.00£72.00£144.00£216.00
£15.00£22.50£90.00£180.00£270.00
£20.00£30.00£120.00£240.00£360.00
£25.00£37.50£150.00£300.00£450.00
£30.00£45.00£180.00£360.00£540.00
£40.00£60.00£240.00£480.00£720.00
£50.00£75.00£300.00£600.00£900.00

Overtime at double time (2×)

Hourly rateOT rate (2×)4 hrs OT8 hrs OT12 hrs OT
£10.00£20.00£80.00£160.00£240.00
£12.00£24.00£96.00£192.00£288.00
£15.00£30.00£120.00£240.00£360.00
£20.00£40.00£160.00£320.00£480.00
£25.00£50.00£200.00£400.00£600.00
£30.00£60.00£240.00£480.00£720.00
£40.00£80.00£320.00£640.00£960.00
£50.00£100.00£400.00£800.00£1,200.00

Effective hourly rate with overtime

This table shows what your effective hourly rate becomes once overtime is included. The effective rate is total gross pay divided by total hours.

Hourly rate40 + 4 at 1.5×40 + 8 at 1.5×37.5 + 5 at 1.5×37.5 + 10 at 1.5×
£12.00£12.55£13.00£12.53£12.95
£15.00£15.68£16.25£15.66£16.18
£20.00£20.91£21.67£20.88£21.58
£25.00£26.14£27.08£26.11£26.97
£30.00£31.36£32.50£31.32£32.37
£40.00£41.82£43.33£41.76£43.16
UK rules

Overtime pay and UK employment law

There is no statutory overtime rate in the UK. The premium you receive for overtime, whether that is flat rate, time and a quarter, time and a half or double time, is decided by your employment contract rather than by legislation. If your contract is silent on overtime pay, there is no automatic right to a premium.

The one legal floor is the minimum wage. Across all hours worked in a pay reference period, including overtime, your average hourly pay must not fall below the National Minimum Wage or National Living Wage for your age group. If long overtime at the flat rate pulls the average below that threshold, the employer is in breach regardless of what the contract says.

Working time limits

The Working Time Regulations 1998 cap average weekly working time at 48 hours, measured over a 17 week reference period (or up to 52 weeks by collective agreement). Workers can opt out of this limit individually by signing a written agreement. Certain sectors, including offshore workers, mobile transport workers and junior doctors, have their own rules.

Overtime and holiday pay

Non-guaranteed overtime that is sufficiently regular should be included in holiday pay for the first four weeks of statutory leave. The principle comes from Bear Scotland v Fulton (2015) and has been confirmed in subsequent Employment Appeal Tribunal decisions. The practical detail of how far back claims can reach has been further tested in the courts, so the area is still developing. If overtime forms a material part of pay in your organisation, it is worth checking the position with an employment law adviser.

Quantim

Track overtime hours accurately with Quantim

Quantim is a timesheet system, not a payroll system. It does not calculate tax, National Insurance or net pay. What it does is capture hours as they happen, split by project and activity, so you have the accurate record you need to apply the correct overtime rate to the correct hours in your payroll run.

Real time timesheets

Staff record hours against projects and activities as they work, not from memory at the end of the week. The timesheet entries are date and time stamped, so you know exactly which hours fell outside contracted time.

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Overtime reports

Filter recorded time by person, date range and activity type to see how many overtime hours each team member worked. Export the figures and hand them straight to payroll.

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Cost visibility

When hourly costs are set against each person, Quantim shows the cost impact of overtime on a project, so a manager sees the budget effect before the month end, not after it.

FAQ

Overtime calculator questions

How do you calculate overtime pay?

Multiply the hourly rate by the overtime multiplier to get the overtime hourly rate, then multiply that by the number of overtime hours. If your normal rate is 25 pounds an hour and you work 8 overtime hours at time and a half, the overtime rate is 37.50 and the overtime pay is 300 pounds gross. Add that to your regular pay for the total.

What is time and a half?

Time and a half means 1.5 times the normal hourly rate. If your hourly rate is 20 pounds, time and a half is 30 pounds an hour. It is the most common overtime multiplier in the UK, though your contract may use a different rate or pay overtime at the flat rate.

What is double time?

Double time means twice the normal hourly rate. A 20 pound an hour rate becomes 40 pounds for every overtime hour. Double time is most often applied to bank holidays and Sundays, but it depends entirely on your contract because there is no statutory overtime rate in the UK.

Is there a legal overtime rate in the UK?

No. UK law does not require employers to pay a premium for overtime. The only legal requirement is that average pay across all hours, including overtime, must not fall below the National Minimum Wage or National Living Wage for the worker's age group. The overtime rate, whether that is the flat rate, time and a quarter, time and a half, or double time, is set by the employment contract, not by statute.

Do I have to work overtime if my employer asks?

Check your contract. If it contains an overtime clause, you may be required to work reasonable overtime when asked. If the contract is silent on overtime, you can decline. Either way, the Working Time Regulations 1998 cap average weekly working time at 48 hours measured over a 17 week reference period, unless you have signed a written opt out.

Does overtime count towards holiday pay?

It depends on whether the overtime is regular and settled enough to form part of normal remuneration. The Supreme Court ruled in Bear Scotland v Fulton that non-guaranteed overtime, hours an employer is not obliged to offer but a worker must do if asked, should be included in holiday pay for the first four weeks of statutory leave. Purely voluntary overtime that is truly occasional is less likely to count, but case law is still developing and you should take advice if the amounts are material.

What is the effective hourly rate?

The effective hourly rate is total gross pay divided by total hours worked, regular and overtime combined. It shows what you actually earned per hour across the whole week rather than just the contracted rate. If you earn 1,000 pounds regular pay for 40 hours and 300 pounds overtime for 8 hours, the effective rate is 1,300 divided by 48, which is 27.08 pounds an hour.

How does Quantim help with overtime?

Quantim is a timesheet system, not a payroll system, so it does not calculate pay. What it does is give you an accurate record of the hours each person worked, split by project and activity, as they happen rather than reconstructed at month end. That record is what makes it possible to apply the correct overtime rate to the correct hours in your payroll run, instead of relying on memory or a paper sign off sheet.

Is this overtime calculator free to use?

Yes. It runs in your browser, there is no signup, and the figures you enter are not saved or sent anywhere.

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From Timesheet To Payroll

Accurate overtime starts with accurate timesheets

A calculator gives you the right number for one week. Quantim gives you the right numbers every week, for every person, broken down by project and activity, ready to hand to payroll. Try it free for a month. No credit card needed. Free data migration. Cancel anytime.

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