Rates & overtime
Day rates, hourly rates, overtime and weekend multipliers, with worked examples and correct rounding.
Start from an hourly rate
Most enhanced rates are multiples of your normal hourly rate, so convert a day rate first. Divide the day rate by your standard hours. A £200 day over 8 hours is £25.00 an hour. Then apply the multiplier: time and a quarter (×1.25) is £31.25, time and a half (×1.5) is £37.50, and double time (×2) is £50.00.
Avoid rounding errors
When the hourly rate doesn't divide evenly (for example £165 over 7.5 hours), keep the full-precision rate in your working and round each invoice line to the penny. Rounding the hourly rate first can leave you a few pence out per line, which adds up across a month and makes timesheets harder to reconcile with the agency or contractor.
Agree rates in writing
Agree overtime, Saturday and Sunday rates in writing before you work the hours, and show them as separate lines with the hours and rate on each one. That way the client can check every line against the timesheet.
Questions
What's time and a half on a £200 day rate?
Over an 8-hour day the hourly rate is £25.00, so time and a half is £37.50 an hour.
Do contractors have a legal right to overtime pay?
No. If you're self-employed, enhanced rates are whatever you agree with the client, so put them in writing.
Should overtime go on a separate invoice line?
Yes. Show the hours and rate for each type of time separately so the client can check them against the timesheet.