How to Track Overtime Pay in the UK (2026 Guide)
Whether you're an NHS nurse picking up bank shifts, a police officer doing overtime, or a warehouse worker clocking extra hours — here's the clearest guide to tracking what you're actually owed.
- UK workers have no statutory right to overtime pay unless their contract specifies it — but once worked, contractual overtime must be paid in full
- Overtime is taxed at your marginal income tax rate; it can push you into the 40% bracket if total annual income exceeds £50,270
- Under Working Time Regulations 1998, holiday pay must include regular overtime for anyone who works it “sufficiently regularly”
- NHS overtime under Agenda for Change begins after 37.5 contracted hours/week; police overtime uses annual pay ÷ 365 per hour
- Logging shifts in real-time — via an app or spreadsheet — provides the most reliable evidence for disputing a payslip error
- Payroll errors are common; cross-checking gross pay against your contracted rate × hours worked every payslip is the fastest way to catch mistakes
What counts as overtime pay in the UK?
Overtime pay is any additional pay you receive for working beyond your contracted hours. In the UK, there's no single legal definition and no mandatory rate — it's set by your employment contract.
That said, the law does require a few things:
- Your total pay for all hours worked must not fall below the National Living Wage (£12.21/hr from April 2025 for workers aged 21+), even if overtime is technically unpaid.
- You can't be required to work more than 48 hours per week on average under the Working Time Regulations 1998 — unless you've signed a written opt-out agreement.
- Regular overtime must be included in holiday pay calculations, following Employment Appeal Tribunal rulings in recent years.
Many workers don't realise that regular overtime — even if technically voluntary — must be reflected in their holiday pay. If you consistently work extra shifts, your employer should be averaging your pay over the past 52 weeks, not just paying you your basic salary during annual leave.
3 ways to track your overtime hours
1. Spreadsheet (free, but slow)
Create columns for: shift date, start time, end time, hours worked, pay rate, gross earnings. Works fine for a single pay rate, but becomes messy fast once you add x1.5, x2, bank holiday rates, or mid-shift rate changes.
2. Notes app on your phone
Better than nothing, but no automatic calculation and no year-end totals. You'll still need to crunch the numbers manually when you want to see how much you've actually earned.
3. A dedicated overtime tracking app
The most accurate option — especially if your pay includes multiple rates within a single shift. A good app handles custom rates, real-time tracking, and gives you an accurate cumulative total across weeks and months.
Overtime Live — Built for UK Shift Workers
Real-time earnings, custom pay rates (x1.5, x2, bank holidays), shift patterns, and a live lock screen widget. Built by a shift worker, for shift workers. Free to download.
NHS workers: how overtime pay works under Agenda for Change
If you're on an NHS Agenda for Change contract, overtime rules are more specific than in the private sector.
| Band | Eligible? | Overtime rate | Bank holiday rate |
|---|---|---|---|
| Bands 1–7 | Yes — after 37.5 hrs/week | 1.5× basic hourly rate | 2× basic hourly rate |
| Band 8a | Some — check locally | Varies by trust | Varies |
| Bands 8b–9 | Not eligible | — | — |
Important: overtime pay is calculated on your basic hourly rate only. Your High Cost Area Supplement (HCAS) is excluded from the overtime rate calculation.
Part-time NHS staff are paid at their standard hourly rate for extra hours up to the 37.5-hour full-time threshold. Only hours above that attract the 1.5× overtime rate.
NHS Bank Shifts
Bank shifts may be paid at a different rate to your contracted rate, and bank holiday rules can differ depending on whether you picked up the shift as overtime or as a bank worker. Track bank and contracted hours separately.
Is overtime pay taxed differently in the UK?
No. Overtime is taxed as regular income through PAYE at exactly the same rate as your normal pay. Your employer deducts income tax and National Insurance automatically.
Where workers sometimes get caught out: if overtime pushes your total annual income above the 40% threshold (currently £50,270), those earnings are taxed at 40% rather than 20%.
If your overtime is processed through PAYE by one employer, you won't normally need to file a self-assessment return. But if you work multiple jobs or pick up bank shifts with different employers, HMRC may not have the full picture. Keeping your own records lets you verify your tax code is correct.
Overtime and holiday pay — what the law says
Following key Employment Appeal Tribunal rulings, regular and predictable overtime must be included when calculating your statutory holiday pay. Employers must use a 52-week reference period to calculate average weekly pay for workers with variable earnings.
Keeping a personal log of every overtime shift you work — with hours and earnings — gives you the records to challenge a holiday pay calculation if you ever need to.
Common overtime pay rates by sector
| Sector | Typical OT rate | Bank holiday rate |
|---|---|---|
| NHS (Bands 1–7) | 1.5× basic | 2× basic |
| Police (England & Wales) | 1.33× (time and a third) | Double time + rest day |
| Manufacturing / factory | 1.5× common | 2–2.5× common |
| Retail & hospitality | Varies widely | Often 2× or day in lieu |
| Logistics / warehouse | 1.25–1.5× typical | 2× common |
| Prison / security | Contract-dependent | Enhanced rates typical |
The easiest way: use a dedicated app
I built Overtime Live because I couldn't find a shift tracking app that worked the way shift workers actually get paid. Most apps are built for office workers with one pay rate. If you work nights, weekends, and bank holidays at different rates — they fall apart.
Here's what makes a good overtime tracker for UK shift workers:
- Custom pay rates per shift — not just one hourly rate, but x1.5, x2, or fully custom rates for different shift types
- Mid-shift rate changes — if you start on standard pay and tip into overtime halfway through, you need to split the shift at the rate boundary
- Real-time earnings display — watching your earnings tick up second by second keeps you motivated
- Shift patterns — build your recurring rota once and have shifts auto-populate
- Private and offline — your earnings are personal; they shouldn't require an account or live in the cloud
Try Overtime Live — Free on iOS & Android
No account required. All data stays on your device.
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