An employer should consider guaranteed and non-guaranteed overtime when calculating statutory holiday pay. Where voluntary overtime is ‘normal remuneration’, an employer may also need to take this into account when calculating holiday pay. Similarly, you should factor any overtime earnings into your submissions for benefits, because this can impact your overall income.

### How do I calculate overtime and normal pay in Excel?

1. =(regular time*rate) + (overtime*rate*1.5)
2. Total pay for overtime: =(E4*G4)+(F4*G4*1.5)
3. Total hours worked: =(C4-B4)*24.
4. Regular time formula: =MIN(8,D4)
5. Overtime: =D4-E4.
6. =(E4*G4)+(F4*G4*1.5)
7. =(regular time*rate) + (overtime*rate*1.5)

It’s a breach of contract to change your working conditions without your agreement. Because the employee has no obligation if the work is offered, he or she should not be treated unfairly or less favourably if he or she chooses not to accept it. If you perform work voluntarily which is outside the terms and conditions of your appointment you may be paid for such work at a special rate. For those looking for a more in-depth understanding of what overtime is, how it works, and other areas of overtime, we have created an in-depth guide on everything you need to know about overtime.

## How to calculate overtime? Understand what the law says about value

You can also contact the Advisory, Conciliation and Arbitration Service (Acas) with questions about general holiday pay issues. If no pay was paid in any week, count back another week so the rate is based on 52 weeks in which pay was paid. Workers are entitled to a week’s pay for each week of statutory leave that they take.

However, in the UK there is no legal requirement for an employer to pay or offer any time back as TOIL, unless it is specified in the employment contract. Instead of paying employees for their overtime, some employers take the decision to give back these hours as time off in lieu (TOIL). With voluntary overtime you can ask an employee to work overtime hours, bookkeeping for startups but they are not obliged to accept it. This is because there is nothing in the contract stipulating that you offer overtime, or that the employee has to accept it. HOP stands for hourly overtime pay, whereas HRP stands for the hourly regular pay; m stands for the multiplier. This is typically time and a half (1.5), but can be any rate you see fit.

## Holiday entitlement

You can enter the ‘extra’ amount you wish to be added to your ‘take home’ pay on the next payslip. We will automatially run a reverse calculation and find all the deductions that you normally incur to be able to find the amount of gross income you would have to earn. You can then use that figure to workout how many hours of overtime you would need. Overtime is not always paid at a higher rate although this is not uncommon, in addition multiple overtime rates may be available based on various thresholds. Time off in lieu (TOIL) schemes are an example of this where an employee can accrue additional paid leave as an alternative to additional salary. More typically in the UK an employee will reach the threshold for overtime based on their contractual hours per day.