Does Minimum Wage Apply to Overtime?
Yes — the National Minimum Wage (NMW) must be met on average across your entire pay reference period, which includes all overtime hours you work.
HMRC checks compliance by dividing your total gross pay (including any overtime pay) by your total hours worked in the pay period. If that average falls below the NMW rate for your age, your employer is in breach of the law — regardless of whether the shortfall happens in a single long week or across many shifts.
Importantly, UK law does not require employers to pay a premium for overtime. Time and a half, double time, or any other enhanced rate is entirely at your employer's discretion (or a contractual agreement). What the law does require is that the average never drops below the minimum.
Overtime Rules for Minimum Wage Workers
- No legal right to enhanced overtime pay. There is no statutory requirement in the UK for employers to pay a premium rate for overtime. Any enhanced rate (e.g. time and a half) must be agreed in your contract.
- Average rate must always meet NMW. Your total pay divided by total hours in the pay reference period must equal or exceed your applicable NMW rate. Working unpaid or underpaid overtime can breach the law even if your basic hourly rate is above NMW.
- Voluntary overtime counts towards holiday pay. Since the Supreme Court ruling in Harpur Trust v Brazel (2022), regularly worked voluntary overtime must be included when calculating holiday pay. This prevents employers from using overtime to inflate normal hours while keeping holiday pay low.
National Minimum Wage Rates 2026/27
The following rates apply from 1 April 2026:
| Age / Category |
Hourly Rate |
Weekly Pay (40hrs) |
Annual Pay (40hrs, 52wks) |
| 21 and over (National Living Wage) |
£12.21 |
£488.40 |
£25,396.80 |
| 18–20 |
£10.00 |
£434.80 |
£22,609.60 |
| Under 18 / Apprentice |
£7.55 |
£302.00 |
£15,704.00 |
Worked Examples
Basic rate£12.21/hr
Regular pay£488.40
OT pay (1.5x)£183.15
Total weekly£671.55
Avg rate£13.43/hr
Basic rate£12.21/hr
Regular pay£463.98
OT pay (1x)£97.68
Total weekly£561.66
Avg rate£12.21/hr
Basic rate£12.21/hr
Regular pay£427.35
OT pay (2x)£122.10
Total weekly£549.45
Avg rate£13.74/hr
Did You Know?
There is no legal requirement in the UK for employers to pay enhanced overtime rates. Time and a half or double time is entirely at your employer's discretion. However, if your overtime is unpaid or paid at a lower rate, it could bring your average hourly pay below minimum wage — which IS illegal.
Tips for Overtime Workers
- Check your contract to see what overtime rate you're entitled to — there's no legal right to enhanced pay, but your contract may guarantee it
- Track all overtime hours carefully — if your average hourly rate drops below NMW, your employer is breaking the law
- Regularly worked overtime must be included when calculating your holiday pay, following the Harpur Trust v Brazel ruling
- If you're salaried and work unpaid overtime, divide your actual total pay by actual total hours to check NMW compliance
- You can opt out of the 48-hour weekly working limit, but your employer cannot force you to — and you can opt back in with 7 days' notice
Frequently Asked Questions
Does my employer have to pay overtime at a higher rate?
No. UK law does not require employers to pay overtime at a premium rate. There is no legal right to time and a half or double time. However, your employer must ensure that your average hourly rate across the pay reference period does not fall below the National Minimum Wage, regardless of the hours you work. Any enhanced overtime rate must be set out in your contract of employment.
How is minimum wage calculated when I work overtime?
Minimum wage compliance is assessed on your average hourly rate within the pay reference period (usually a week or month). Total pay — including all overtime pay — is divided by total hours worked. If overtime is paid at your basic rate, working more hours keeps your average steady. If overtime is unpaid or underpaid, it can pull your average below the minimum wage, which is illegal.
What is the pay reference period for minimum wage?
The pay reference period is the interval between your pay dates. For weekly-paid workers it is one week; for monthly-paid workers it is one month. NMW compliance is checked over this entire period, not on individual shifts or days. Your total pay divided by total hours in the period must equal or exceed your applicable NMW rate.
Can I be paid less than minimum wage in a week I work lots of overtime?
No. Even in weeks when you work a high number of hours, your employer cannot pay you below the National Minimum Wage on average. If overtime dilutes your average hourly rate below the NMW, your employer is breaking the law. You are entitled to receive the difference, and HMRC can investigate and issue penalties to non-compliant employers.
What if my overtime brings my average rate below minimum wage?
If working overtime causes your average hourly rate to fall below the National Minimum Wage, your employer is underpaying you. Raise this in writing first. If unresolved, you can report it to HMRC via the GOV.UK National Minimum Wage complaint form (anonymous if preferred). You are entitled to back pay for any underpayment, plus HMRC can issue a Notice of Underpayment and financial penalties to your employer.
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