National Living Wage 2026 — How It Affects Overtime
In April 2025, the National Living Wage for workers aged 21 and over increased to £12.21 per hour — a 6.7% rise from the previous year. A further rise is anticipated in April 2026 as the government continues its trajectory towards a genuine living wage.
Why does this matter for overtime? Because your overtime rate is a multiplier on your base hourly pay. Time and a half on £12.21 is £18.32. Double time is £24.42. Even a 50p rise in the base rate translates to 75p more per hour at time and a half — and that adds up fast across a long shift.
Quick check: If your employer still has you on a rate below £12.21/hr, they are in breach of the National Minimum Wage Act. Check your payslip now and raise it with HR or a union rep if needed.
For many shift workers on the minimum wage — including care workers, retail staff, and hospitality workers — this uplift is significant. And if you're tracking overtime with the right tools, you'll immediately see your total climb when a new rate kicks in.
Holiday Pay Reform — The Rule Change Most Workers Miss
One of the most important — and least talked about — employment law changes of recent years affects how holiday pay is calculated for irregular-hours workers. This change, which came into force following the UK government's post-Brexit employment law reforms, matters enormously for shift workers, bank staff, and anyone with a variable rota.
Under the updated rules, if you work irregular hours, your holiday pay must be calculated based on your average earnings over the previous 52 weeks. This means your holiday pay should include:
- Regular overtime payments (including time and a half, double time)
- Unsocial hours enhancements
- Bank holiday premiums
- Any regular commission or bonus tied to performance
In practice, many employers are still calculating holiday pay on base salary only — which is incorrect and potentially unlawful. If you're regularly earning enhanced overtime rates and your holiday pay looks suspiciously lower than your normal take-home, it's worth challenging.
What to do: Keep detailed records of your overtime. An app like Overtime Live logs every shift, rate, and earnings total — giving you documented proof of your average pay if you ever need to raise a holiday pay dispute.
NHS Pay Deal 2025/26 and Overtime Rates
NHS staff on Agenda for Change (AfC) received a 5.5% consolidated pay rise in 2025/26 as part of the multi-year deal intended to address years of real-terms pay erosion. For Band 5 nurses at the top of their pay step, this means a base rate of approximately £14.10 per hour in 2025/26 (though exact figures vary by point within the band).
The unsocial hours enhancement structure under AfC remains in place for 2026:
| Day/Time | Enhancement | Effective Multiplier |
|---|---|---|
| Saturday (all hours) | Time and a third | ×1.33 |
| Sunday (all hours) | Time and two-thirds | ×1.67 |
| Bank Holidays | Double time (most contracts) | ×2.0 |
| Weeknights (8pm–6am) | Time and a third | ×1.33 |
Use our free overtime pay calculator to see exactly what any of these rates means for your specific hourly pay. Select your multiplier, enter your hours, and get an instant breakdown.
Police Pay and Overtime in 2026
Police pay has been a politically charged subject for years. Real-terms pay for officers has declined significantly since 2010, and while the 2024/25 award included a notable uplift, overtime remains critical for many officers trying to close the gap.
Under the Police Regulations 2003, the standard overtime rules for England and Wales are:
- Rest day working (recalled or required): Time and a third (×1.33)
- Bank holiday working (compulsory): Double time (×2.0) or a day in lieu
- Inspector and above: Different allowance structure — check your individual force agreement
For a Constable on the 2025/26 pay scale, the base rate works out to approximately £17.20/hr (for a Constable at the top of the scale on a 40-hour week). Time and a third on that rate is £22.90/hr. Over a 10-hour rest day shift, that's £229 in gross overtime pay before tax.
Track your police overtime accurately using the Overtime Live calculator — enter your hourly rate, select ×1.33, add your hours, and see your instant gross and estimated net pay.
Your Right to Overtime Pay — What the Law Says
There is no statutory right to overtime pay in the UK beyond the National Minimum Wage — meaning the law doesn't require your employer to pay you more than your regular rate for overtime hours, unless your contract says so. However, this doesn't mean overtime pay is optional.
If your contract specifies an overtime rate (such as time and a half), your employer is legally bound to pay it. Failure to do so constitutes an unlawful deduction from wages — a claim you can bring to an Employment Tribunal within three months of the deduction.
Practical advice: Keep your own records. Don't rely solely on your employer's payroll system. Note your start and end times, any rate changes, and your expected gross pay. Discrepancies are much easier to raise — and prove — when you have your own data.
How to Track Your Overtime in 2026
The single most important thing you can do as a shift worker in 2026 is know what you're owed. That means tracking every shift, every rate change, and every overtime hour in real-time.
Overtime Live is a free iOS app built specifically for shift workers — nurses, police officers, paramedics, care workers, and anyone with a variable rota. You can:
- Track shifts live, with earnings updating in real-time on your Lock Screen
- Set different rates for regular time and overtime within a single shift
- Build a complete earnings history you can use for holiday pay disputes
- See lifetime stats — total hours, average rate, progress towards annual goals
Or if you just need a quick number right now, try the free overtime pay calculator — no account needed.