Free Overtime Income calculator with clear step-by-step results.
Overtime is paid at a premium but taxed at your marginal rate, which is usually higher than your average rate. The figure that actually matters is net pay per overtime hour - often much closer to the base rate than the multiplier suggests.
Gross overtime
Gross = overtime hours x rate x multiplier + double-time hours x rate x 2
Net per overtime hour
Net rate = gross overtime x (1 - marginal tax rate) / total overtime hours
Overtime entitlements, maximum working hours and premium rates are set by employment law and collective agreements that vary by jurisdiction. Tax shown is a simple marginal estimate.
It stacks on top of your regular income, so it is taxed entirely at your top marginal rate rather than benefiting from lower bands already used by base pay.
Sometimes. Some schemes contribute on total earnings and others only on base salary, and additional income can taper means-tested benefits. Check your scheme rules.