Guide

Overtime pay: what the law says

Extra hours should mean extra pay. Here's what's guaranteed and what depends on your contract.

No legal overtime rate

There's no legal right to a higher rate for overtime. Your contract decides whether it's paid at time and a quarter, time and a half or your normal rate. But your average pay across the pay period, including overtime hours, must reach the minimum wage.

Unpaid overtime

If you're on a salary or a fixed weekly wage and work extra hours unpaid, your pay divided by all the hours you worked can drop below the minimum wage. If it does, you've been underpaid.

Overtime and the 48-hour week

Overtime counts towards the 48-hour average working week. You can only be required to work more if you've opted out in writing, and you can cancel an opt-out with notice.

Check it

Use the overtime and night pay calculator to work out a week's pay with premium hours.

A worked example

A worker on a 40-hour contract at £12.71 works 48 hours. If overtime is paid at time and a half after 40 hours, the week is £508.40 plus £152.52, so £660.92. If overtime is paid at the normal rate, it's £610.08.

If the extra 8 hours aren't paid at all, the average rate for the week drops to £10.59 an hour, which is below the minimum wage.

Overtime and holiday pay

Regular overtime, even voluntary overtime that you work often, should be included when your holiday pay is worked out for the first 4 weeks of your annual leave.

Can you be made to do overtime?

Only if your contract says so. If it's guaranteed overtime, your employer must offer it. If it's compulsory, you must work it when asked. If it's voluntary, you can say no.

Keep your own record

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Common questions

Is overtime paid at time and a half by law?

No. Overtime rates come from your contract. By law your average pay, including overtime hours, just has to reach the minimum wage.

Does overtime count towards holiday pay?

Regular overtime should be included in holiday pay for the first 4 weeks of your leave.

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