Overtime Pay Calculator
Use the free overtime pay calculator to accurately calculate how much to pay your employees for working overtime. To calculate overtime pay you will need to know your employee's hourly rate.
How is overtime pay calculated?
Overtime can be paid in a number of different ways. For example, employees may receive their usual hourly rate for overtime worked, or a premium rate such as time and a half.
To calculate how much you may need to pay an employee for overtime, use the FREE BrightHR overtime pay calculator. Simply enter key details such as the employee’s base hourly rate, the number of overtime hours they have worked, and the overtime pay rate stated in their employment contract.
For example: If you pay an employee time and a half for overtime, enter a multiplier of 1.5.
Calculate overtime pay using your company's overtime pay rate
Overtime pay =
Base hourly rate × Overtime hours worked × Overtime multiplier
The benefits of paying time and a half
Paying overtime premium rates is beneficial for both business owners and employees. This is usually paid at time and a half, though some businesses choose to pay double time. Overtime premium rates are usually paid by multiplying an employee's base salary by 1.5x or 2x.
For example, if an employee on an hourly rate of £15 per hour is paid time and a half they will be paid:
£15 x 1.5 = £22.5 per hour when working overtime
Unless specified in an employment contract, paying overtime premium rates isn't a legal requirement in the UK, though many businesses choose to do it for a number of reasons:
- Provides an incentive for employees to work overtime
- Avoids the recruitment costs to pay for extra staff to cover shifts
- Paying overtime becomes simple to manage with one calculation
- Boosts employee morale and productivity
Automatically track time and calculate overtime pay with BrightHR
Track overtime hours
Use automated overtime tracking to simplify the management of overtime in your workplace.
Integrate HR and payroll
Sync your payroll and HR for stress-free overtime payments, ensuring your staff are paid on time for the hours they work.
Review your contracts
Outline the details of your overtime pay rates with a review of your employment contracts.
Call for expert advice
Speak to a team of experts or use the HR AI chatbot for instant answers to your overtime and pay queries.