Is it worth getting paid for overtime?

lemon125

Hi all,
Someone might be able to help me out, maybe with some break even calculation or personnel advice.

I work allot of over time and get paid time and a half for this, i also work one weekend a month on Saturday (8hrs) and Sunday (8hrs), with first 4 hrs sat at time and a half, second 4 at double time and all day Sunday at double time.

As im getting taxed to the hilt on this overtime and i'm nearly always gone and not able to enjoy the fruits of my labour, can anyone tell me if its worth my while getting paid for me overtime or should i switch to time off in lieu for this? so a weekend work will accumulate to 30hrs off in lieu which is nearly 4 days off work. (which i'd be paid normal pay?)

At the minute, all the money i have i need and am glad of the overtime money, but at the end of the day im wrecked from it all without making much money form all the extra work.

Mr. Loverman

Is the time in lieu also at time and a half or double time?

If so it makes more sense from a tax perspective to take the time in lieu, i.e. holidays are not taxed.

But it really depends on your situation. Personally I would take the money as I am in savings mode.

Victor

lemon125 wrote: »

(which i'd be paid normal pay?)

That depends on how things are structured.

If you are working too much and it is to your detriment, then yes, ask for some time off or structure your shifts differently (would working 4 x 10 hour shifts be better than 5 x 8 hour shifts). Or ask your boss is there a way that things can be better structured, e.g. managing when people take holidays.

Working overtime, especially at time and a half or double time is always worth it financially, but not necessarily socially or personally.

lemon125

Yeah, lieu is given as time and a half and double time.
I'm in the saving mode myself also, so the few pound it brings in is vital to keep the bills paid etc. I've never had a month where i didnt have substantial OT, so thats the other fear, how little would i actually have if i didnt have it.

I suppose its nice to always have that option, no doubt finance dept are trying to cut costs so reducing OT bill would be good for them also. Should really do out a spreadsheet with calc's to see exactly what the benefits of 16 hrs (plus travelling time of 4 hrs) of a weekend are actually paying me.

Denerick

I always get taxed to the hilt on overtime. In fact I calculate that as much as 35% of the extra money I get for overtime is eaten by the USC and other stealth taxes, and I'm on just over the minimum wage as it is.

Victor

Denerick wrote: »

I calculate that as much as 35% of the extra money I get for overtime is eaten by the USC and other stealth taxes

But you are still getting the 65% that you wouldn't be getting otherwise.

Denerick

Victor wrote: »

But you are still getting the 65% that you wouldn't be getting otherwise.

Yes, but does it justify the assault on my leisure time? Some weeks I don't know, I mean I like to be able to drink pints rather than cheap wine in the park... but at the expense of exhaustion come Saturday?


... See what I did there?

tenchi-fan

Time off in lieu is given as time and a half? :O

Wow, this hardly ever happens. If an employee needs 4 hours to finish their work, it doesn't make sense to give them 8 hours off the following week :P

My view, it depends on how much tax you're paying. If you are paying 25% tax (the low rate), get over it. Focus on the bottom line of your payslip.

If you're paying 50% tax, well that's when you might say "you know what, it's not worth it!" I usually hate those socialist slogans plastered on lamp posts, but read one which struck a chord. "Be more, need less"

Anyway.. just a warning with time off in lieu. Cash is better. A bird in the hand is worth two in the bush. Your employer could turn round and scrap all the time off you've earned and there's very little you can do about it. It's not on your payslip. There might not even be a proper record of it. If its mentioned in your contract, it might have a disclaimer like "at management's discretion" or "depends on service levels". Don't accumulate excessive hours.

InTheTrees

tenchi-fan wrote: »

Time off in lieu is given as time and a half? :O

Wow, this hardly ever happens. If an employee needs 4 hours to finish their work, it doesn't make sense to give them 8 hours off the following week :P

It would if otherwise you'd be paying them for 12...

I think.

My brain cant handle all this maths...

doolox

TOIL, or time off in lieu is waste of time if your business is constantly busy.
It works only in cyclical businesses such as hotels or tourism but you end up getting the time off midwinter or such other non-ideal times. Also the record keeping can be dodgy in some areas and it can be hard to claim without incurring distrust and anger from the boss.

Better off with cash up front for all extra work done paid in a timely manner.

The "advantage " of high taxation is that you won't have much competition for the pool of available O/T as was my experience during the low tax times in the early naughties.......

RangeR

For purely the monetary element, enter some daily or weekly gross amounts and see what the difference is, NET, including and excluding various overtimes.

http://taxcalc.eu/