UK Overtime Pay Calculator
Estimate how much extra overtime pay you keep after Income Tax, employee National Insurance, pension and student loan deductions.
Estimate uses UK rUK-style Income Tax bands, employee NI and student loan threshold assumptions for 2026/27 planning. It is a guide, not payroll advice.
UK Overtime Pay Calculator 2026/27
This UK overtime pay calculator estimates how much overtime money you actually keep after tax, National Insurance, student loan repayments and pension deductions. It is designed for employees who want to know whether extra hours are worth it after deductions.
Overtime can look simple on a payslip, but the take-home amount depends on your existing salary, tax band, NI position, student loan plan and whether pension contributions apply to overtime pay.
How the UK overtime pay calculator works
The calculator estimates your normal hourly rate from annual salary and weekly contracted hours. It then applies your overtime multiplier, such as 1.5x for time and a half, to calculate gross overtime pay for the month.
To estimate deductions, it compares annual take-home before overtime with annual take-home after adding an annualised version of the monthly overtime. The difference is then shown as the estimated net overtime pay for the month.
Is overtime worth it after tax?
Overtime is usually still worth it because you keep part of the extra pay. However, the amount you keep may be lower than expected if the overtime falls into a higher tax band, triggers student loan repayments, or is subject to pension deductions.
For example, someone earning below the higher-rate threshold may keep more of their overtime than someone whose extra pay is taxed at 40%. Student loan deductions can reduce take-home further once income is above the plan threshold.
Overtime rate examples
| Overtime rate | Meaning | Example on £20/hour |
|---|---|---|
| 1x | Normal hourly rate | £20/hour |
| 1.25x | Time plus 25% | £25/hour |
| 1.5x | Time and a half | £30/hour |
| 2x | Double time | £40/hour |
What deductions can apply to overtime?
- Income Tax: overtime is taxable employment income.
- Employee National Insurance: overtime can increase NI deductions.
- Student loan repayments: extra pay can increase repayments above the relevant threshold.
- Pension contributions: some workplace pensions calculate contributions on overtime; others do not.
Example overtime calculation
Suppose your salary is £35,000, normal hours are 37.5 per week, and you work 10 overtime hours at 1.5x in a month. Your normal hourly rate is roughly £17.95, so the gross overtime is about £269.23 before deductions.
The net amount depends on your marginal tax rate, NI rate, student loan plan and pension rules. That is why the calculator focuses on the difference between normal take-home and take-home after overtime.
FAQ
Is overtime taxed more in the UK?
Overtime is not a separate tax type. It is added to employment income and taxed through normal Income Tax and NI rules. It can feel taxed more if it falls into a higher marginal band.
Does overtime affect student loan repayments?
Yes, overtime can increase student loan repayments if your income is above the relevant plan threshold.
Does pension apply to overtime?
It depends on your workplace pension rules. Some schemes include overtime in pensionable pay and others do not.
Can overtime push me into higher-rate tax?
Yes. If overtime takes your total taxable income above the higher-rate threshold, that portion can be taxed at the higher rate.
