🇬🇧 UK Calculator · 2025/26

Overtime Holiday Pay Calculator Uk

Free UK calculator — instant, accurate results for overtime holiday pay

⏱️ Overtime Calculator

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Overtime Holiday Pay Calculator for UK Workers

This calculator determines how regular overtime affects your holiday pay entitlement under UK law. Following the landmark Bear Scotland v Fulton ruling (2014) and subsequent Employment Appeal Tribunal decisions, employers must include regular overtime in holiday pay calculations for at least the first 4 weeks of annual leave.

The ruling applies to all types of regular overtime: compulsory, guaranteed, non-guaranteed, and voluntary, provided it forms a "sufficiently regular and settled" pattern. The reference period for calculating average overtime is 52 weeks (from April 2020, increased from 12 weeks).

How Overtime Holiday Pay Is Calculated

Holiday Daily Rate = (Base Pay + Average Weekly OT) ÷ 5

Average weekly overtime is calculated using the last 52 working weeks (excluding any weeks with no pay). This means seasonal overtime patterns are smoothed across the year.

Base SalaryAvg Weekly OTHoliday Daily Rate4-Week Holiday Pay
£600/wk£80£136£2,720
£500/wk£120£124£2,480
£450/wk£60£102£2,040
£700/wk£150£170£3,400

Which Leave Weeks Include Overtime?

UK holiday entitlement of 5.6 weeks is split legally into: 4 weeks under the Working Time Directive (Regulation 13) where overtime MUST be included, and 1.6 weeks additional UK statutory leave (Regulation 13A) where overtime is NOT legally required but some employers include it voluntarily.

If you believe your holiday pay is incorrect, check with our holiday pay calculator. For your base salary, use the pro rata calculator, and for total overtime earnings, try our overtime calculator.

Backdated claims: You can claim underpaid holiday pay for past periods, but the Deductions from Wages (Limitation) Regulations 2014 limit backdated claims to 2 years. Act promptly if you believe your holiday pay should include overtime.

How to Use the Overtime Holiday Pay Calculator Uk

Using our overtime holiday pay calculator uk is straightforward. Follow these steps to get accurate results for your situation:

  1. Enter your full-time salary — This is the annual salary for the equivalent full-time role, before any deductions. You'll find this on the job advert or your contract.
  2. Set the full-time hours — The standard working week for the role. Most UK employers use 37.5 or 40 hours per week.
  3. Enter your actual hours — Your contracted weekly hours. This is the number you actually work.
  4. Click Calculate — The overtime holiday pay calculator uk displays your results instantly, with annual, monthly, weekly, daily, and hourly breakdowns.
Pro tip: If your employment contract shows different figures to our calculator, check whether your employer uses a 365-day year or a 52.143-week year — this can cause small rounding differences.

Worked Example: Overtime Holiday Pay Calculator Uk

Here's a real-world example using the overtime holiday pay calculator uk. James earns £14.50 per hour as a warehouse supervisor and works 10 hours of overtime per week at time-and-a-half.

Overtime rate: £14.50 × 1.5 = £21.75 per hour

Weekly overtime pay: £21.75 × 10 = £217.50

Monthly overtime: £217.50 × 52 ÷ 12 = £942.50

Annual overtime: £217.50 × 52 = £11,310

Combined with his standard 40-hour week (£14.50 × 40 = £580/week), James's total annual earnings are £30,160 + £11,310 = £41,470 before tax.

Holiday pay note: If James works regular overtime, this must be included in his holiday pay calculation under UK law. The landmark Bear Scotland ruling established that regular overtime counts towards holiday pay.

UK Overtime Rules You Should Know

  • No legal right to overtime pay: UK law doesn't require employers to pay overtime — it depends on your contract. However, your average hourly pay must not fall below National Minimum Wage when overtime is included.
  • Overtime and holiday pay: Since the Bear Scotland v Fulton ruling (2014), regular and systematic overtime must be included in holiday pay calculations. Use our overtime holiday pay calculator.
  • Working Time Regulations: You cannot be forced to work more than 48 hours per week on average (over 17 weeks) unless you've opted out in writing.
  • Tax on overtime: Overtime is taxed at your marginal rate — if it pushes you into the 40% bracket (above £50,270), you'll pay higher rate tax on the excess.
⚖️ Legal Accuracy Statement
All calculations on this page follow ACAS pro rata pay guidelines and are consistent with the UK Employment Rights Act 1996. Tax figures use HMRC 2025/26 rates. The April 2025 National Living Wage of £12.21/hour is applied where relevant.

Related Salary Calculators

Our overtime holiday pay calculator uk is just one of the tools available on ProRataCalculator. You may also find these useful: pro rata calculator, term-time salary calculator, salary sacrifice calculator.

Last updated: February 2026. Verified against HMRC 2025/26 tax rates and April 2025 National Living Wage (£12.21/hour).

Frequently Asked Questions

Overtime is typically calculated as hours worked beyond your contracted hours, multiplied by an enhanced rate. Common rates are time-and-a-half (1.5×) or double time (2×), though there is no legal requirement for enhanced overtime pay.

Yes, overtime pay is fully taxable. It is added to your regular earnings and taxed at your marginal income tax rate, with National Insurance contributions also applied.

There is no legal right to overtime pay in the UK. However, your total pay (including overtime hours) must not fall below the National Minimum Wage when averaged across all hours worked.

Regular, compulsory overtime should be included in holiday pay calculations. Voluntary overtime that follows a regular pattern may also need to be included, following the Bear Scotland case ruling.