Guide

Overtime pay guide

Overtime pay is usually estimated from three inputs: your regular hourly rate, the overtime hours, and the overtime multiplier. The maths is simple. The judgement is knowing which hours count and which multiplier applies.

Basic overtime formula

Overtime estimate Hourly rate x overtime hours x overtime multiplier = estimated overtime pay.

If the same period also includes regular hours, add regular pay separately. Regular pay is hourly rate multiplied by regular hours.

Example with time-and-a-half

Suppose the hourly rate is GBP 16.00, regular hours are 40, overtime hours are 5, and the overtime multiplier is 1.5.

Part of payCalculationEstimate
Regular payGBP 16.00 x 40GBP 640.00
Overtime payGBP 16.00 x 5 x 1.5GBP 120.00
Total gross estimateGBP 640.00 + GBP 120.00GBP 760.00

Common mistakes

  • Using the wrong overtime multiplier because the contract uses a different rule for weekends, nights, holidays, or bank holidays.
  • Including unpaid breaks as paid time when the employer deducts them.
  • Mixing weekly and monthly figures in the same estimate.
  • Assuming overtime is always paid when some salaried roles treat extra hours differently.
  • Comparing gross overtime with take-home pay after deductions.

Before relying on the result

Check your employment contract, employer policy, rota, payslip, union agreement, and local rules. PayCalcFlow can help you understand the shape of the calculation, but it cannot decide whether overtime is owed in a particular legal or contractual situation.